Investment Income That Requires Tax Reporting
You must report ALL investment gains and income through Self Assessment. Common investments requiring tax reporting:
Cryptocurrency
Bitcoin, Ethereum, Altcoins, NFTs, DeFi gains, staking rewards, mining income
Shares & Stocks
UK shares, international stocks, ETFs, investment trusts, share options
Property Investments
Second homes, buy-to-let sales, property development gains, REITs
Funds & Bonds
Unit trusts, OEICs, investment bonds, gilts, corporate bonds
Other Assets
Gold, art, collectibles, vintage cars, watches, jewellery over £6,000
Dividend Income
Company dividends, investment trust distributions, foreign dividends
Current Tax Year
Annual Allowance
Tax-Free Capital Gains
This allowance applies to total gains across ALL your investments in the tax year.
🏆 Capital Gains Tax Calculator
Current Capital Gains Tax Rates
Current CGT rates for the tax year:
10%
Basic Rate - Shares
For shares & assets (not property)
18%
Basic Rate - Property
UK residential property gains
20%
Higher Rate - Shares
For shares & assets (not property)
24%
Higher Rate - Property
UK residential property gains
₿ Cryptocurrency Tax Rules
Important: HMRC treats crypto as assets, not currency. Every disposal (sale, trade, gift) is a taxable event.
Taxable Events
• Selling for fiat currency
• Trading between coins
• Using crypto to buy goods
• Gifting crypto (over allowance)
Record Keeping
• Transaction dates & times
• Amounts in GBP at time
• Wallet addresses
• Exchange records
Our Service Includes: Crypto transaction analysis, cost basis calculation, pooling rules application, and full HMRC compliance.
💷 Dividend Tax Rates
Annual Allowance
Tax-Free Dividend Income
Check current allowance
8.75%
Basic Rate
Up to basic rate threshold
33.75%
Higher Rate
Higher rate threshold band
39.35%
Additional Rate
Over additional rate threshold
Critical Deadlines for Investors
31 January
Online Self Assessment
Report investment income and gains (except UK property) through Self Assessment.
£100 penalty if late.
60 Days
UK Property CGT Reporting
Report and pay CGT within 60 days of selling UK residential property.
Penalties up to 100% of tax due.
5 October
Register for Self Assessment
Register with HMRC if you have new investment income requiring Self Assessment.
📊 Real Example: How We Saved a Crypto Investor £12,800
Client: James, software developer with crypto investments
Situation: Multiple crypto transactions across 3 years, DIY calculation showed £38,200 CGT due
Our Specialist Analysis Found:
- Incorrect pooling calculations: £6,400 overpayment
- Missed allowable expenses (wallet fees): £1,200
- Bed and breakfasting opportunities: £3,800
- Loss carry forward from previous year: £1,400
Result: Correct CGT liability £25,400
Total Saving: £12,800 (33.5% reduction)
Client Comment: "The crypto tax expertise was incredible. They understood complex DeFi transactions that other accountants couldn't handle."
🎯 Tax-Efficient Investing Strategies
ISA Allowance
Use your annual ISA allowance - all gains and income tax-free within the wrapper
Bed & Breakfasting
Sell and repurchase shares to use annual CGT allowance effectively
Loss Harvesting
Offset capital losses against gains in same tax year to reduce liability
Spouse Transfers
Transfer assets tax-free to use both partners' allowances
Frequently Asked Questions
What is the current Capital Gains Tax allowance?
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The annual Capital Gains Tax allowance allows you to make tax-free gains up to a certain amount each tax year. This allowance applies to total gains across all your investments in the tax year. The exact amount is set by the government each year and can change in the annual budget.
It's important to use this allowance efficiently as it cannot be carried forward to future years if unused.
Do I need to pay tax on cryptocurrency gains?
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Yes, HMRC treats cryptocurrency as assets, not currency. Every disposal (sale, trade, gift, or using crypto to purchase goods) is a taxable event. You must report all crypto gains through Self Assessment and may owe Capital Gains Tax on profits above your annual allowance.
Even swapping one cryptocurrency for another (e.g., Bitcoin to Ethereum) is considered a disposal and may trigger a CGT liability.
What is the deadline for reporting Capital Gains Tax?
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For UK residential property sales, you must report and pay CGT within 60 days of completion using HMRC's "Report Capital Gains Tax on UK Property" service.
For other assets (shares, crypto, etc.), report through Self Assessment by 31 January following the end of the tax year. Late submissions incur automatic £100 penalties plus interest charges on any tax due.
Can I offset investment losses against gains?
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Yes, you can offset capital losses against gains in the same tax year. This is known as "loss harvesting." Any unused losses can be carried forward to future tax years indefinitely, but they must be reported to HMRC within 4 years.
Proper loss harvesting can significantly reduce your tax liability. You can even create tax losses by selling and repurchasing assets, though specific rules apply to prevent abuse.
What records do I need to keep for investment tax?
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You should keep detailed records for at least 6 years after the tax year. Essential records include:
- Purchase and sale dates
- Transaction amounts in GBP
- Contract notes and dividend statements
- Crypto transaction records (exchange statements)
- Property completion documents
- Records of any expenses (broker fees, improvement costs)
Good record keeping is essential for accurate tax reporting and can save significant time and money if HMRC enquires.