Understanding tax implications when selling crypto for a profit

I'm struggling to understand the tax implications of selling crypto for a profit. I understand the Capital Gains Tax (CGT), but am I taxed twice? Is CGT applied first, and then is the net profit added to my gross income and subject to income tax as well?

From a tax perspective, crypto assets are treated like shares and will be taxed accordingly. The CGT treatment of shares – and therefore crypto assets – changed in the recent budget, so the first point to note is that the rates have changed. It is therefore important whether the profits you made were before or after 30th October.

On your main point though, you are not taxed twice. You will pay capital gains tax on your crypto profits and income tax on your normal income. However, the level of income tax you pay will influence the rate of capital gains tax.

You need to calculate your capital gain, which will be your selling price minus your buying price less your annual allowance of £3,000. You then add this to your total taxable income to work out where you fall in the various tax bands.

If your income was £30,000 and your capital gain was £10,000, you would be comfortably within the basic rate band, and you would pay capital gains tax at 18% (assuming the gain was made after 30 October). If you are a higher rate tax payer – which kicks in at an income of over £50,271 - you will pay capital gains tax at the higher rate, currently 24%.

If your income is somewhere in between – you will pay the lower rate of capital gains tax until all your basic rate band is used up, and then pay the higher rate on all the rest.

This site - has the best calculator we’ve found to help you calculate your gain. Plus, this is a useful article on crypto taxation.