Last updated on 13 October 2026
The UK tax landscape is changing… again. In a continued effort to rebalance the books and promote fiscal fairness, the government has introduced a series of Capital Gains Tax (CGT) reforms that take effect from April 2025. If you are an investor, property owner, entrepreneur, or crypto asset holder, these changes will likely affect your financial position and planning.
At Crypto Accountants, we break down what’s changed, what it means for you, and what you can do to stay ahead of the curve.
Overview: Why Are CGT Rules Changing?
Capital Gains Tax UK has long been a topic of political scrutiny in the UK. The divergence between income tax and Capital Gains Tax UK rates created planning opportunities some would say loopholes that allowed higher earners to repackage income as capital gains and pay significantly less tax.
In recent budgets, the government has made it clear: CGT is no longer a side act in the tax situation.
These reforms also align with broader efforts to simplify the tax system and improve compliance, especially across digital assets and international holdings.
Key CGT Changes from April 2025
1. Rate Increases for Business Reliefs
If you are a business owner or investor, this one’s for you.
- Investors’ relief and Business Asset Disposal Relief (BADR) were formerly the hottest topics in tax-efficient exit preparation.
- Under these reliefs, the CGT rate rose from 10% to 14% on 6 April 2025 and to 18% on 6 April 2026.
- And from April 2026, it rises again to 18%.
This softens the tax advantage these reliefs once offered and could influence when and how entrepreneurs exit their businesses.
While BADR doesn’t typically apply to crypto trades, it can apply to company shares held in Web3 startups. Timing your exit might now be more tax-sensitive than ever.
2. Carried Interest: A Big Shift for Fund Managers
For those in venture capital and private equity:
- From 6 April 2025, carried interest will be taxed at a flat rate of 32%.
- A year later, from April 2026, it will be taxed as trading income, meaning up to 47%, including National Insurance.
This overhaul ends the long-standing advantage fund managers had of paying CGT on carried interest rather than income tax.
3. Reduction in the Annual CGT Exemption
The gradual whittling down of the CGT Annual Exempt Amount (AEA) continues.
- For 2025/26, individuals and personal representatives are allowed just £3,000 in tax-free gains.
- Most trusts receive only £1,500.
To put that in perspective: the AEA was £12,300 as recently as the 2022/23 tax year. This change pulls many more individuals into the CGT net, especially casual investors and crypto traders who may not even realise they have a reporting obligation.
Many users make multiple small disposals across DeFi platforms, NFTs, or token swaps. These cumulative gains can now easily exceed the £3,000 threshold.
4. Non-Domiciled Status Abolished: End of an Era
From 6 April 2025, the UK is scrapping its long-standing non-dom regime, replacing it with a residence-based tax system.
Key features include:
- 4-Year FIG Exemption: For the first four years, new UK residents who were not tax residents for the preceding ten years are completely exempt from UK tax on foreign income and gains (FIG).
- Rebasing Relief: If foreign assets are sold after 6 April 2025, they may be rebased to their values as of 5 April 2019.
- Temporary Repatriation Facility: Foreign earnings and profits can be imported into the UK before April 2025 at a 12% tax rate (for 2025–2026 and 2026–2027).
For crypto users who held wallets offshore or used international exchanges, the ability to repatriate historical gains at 12% is a one-time window worth careful consideration.
5. No Change (Yet) to Crypto CGT Framework
Interestingly, crypto assets are still treated under the standard CGT regime, no new rules specific to crypto have been introduced in 2025.
- Token disposals, staking rewards, airdrops (in some cases), and NFT trades are all still potentially chargeable events.
- HMRC is becoming more aggressive with data collection from exchanges and international partners.
With the AEA slashed and CGT rates rising, even modest crypto activity may now warrant annual reporting and a tax bill.
Practical Steps to Take Now
1. Review Your Portfolio
If you are holding appreciated crypto assets, shares, or real estate, ask yourself:
- Should I realise gains before April 2025 at lower rates?
- Would spreading disposals across two tax years mitigate tax impact?
2. Use Your Annual Exemption Wisely
With the exemption now only £3,000, however, precision matters. Therefore, for example, you should carefully plan. In fact, consider using it each year. Moreover, this allows you to realise small gains. As a result, you can reset your base cost. In other words, although the exemption is low, you can still benefit. Consequently, over time, the savings can add up. Nevertheless, many overlook this. Furthermore, while it may seem minor, it plays a key role. Additionally, because gains accumulate quickly, timing is everything. On the other hand, if ignored, you could lose out. Hence, take action early. Above all, consistency helps. After all, strategy matters. Meanwhile, small steps lead to long-term results.
3. Stay on the Right Side of Reporting
With CGT rules tightening, HMRC is less forgiving. Ensure:
- You report gains above the exemption.
- You keep full records of acquisition costs, transaction dates, and sale prices.
- You report crypto gains, even if you’re not withdrawing to fiat.
4. Consider Gifting and Spousal Transfers
Transfers between spouses or civil partners are exempt from CGT. With careful planning, gains can be shared to use both partners’ exemptions and lower tax brackets.
How can we help?
At Crypto Accountants, we specialise in helping individuals and businesses navigate complex tax landscapes, including the quirks of digital assets and international holdings.
Here’s what we offer:
- CGT Calculations for Crypto (NFTs, staking, DeFi, airdrops)
- Strategic Disposal Planning to reduce tax exposure
- Non-Resident & Expat Advice in light of the new domicile rules
- Real-Time Portfolio Reviews to make the most of your annual exemption and timing
Final Thoughts
The CGT changes in 2025 are more than just a rate tweak, they represent a shift in HMRC’s posture towards capital taxation. Gone are the days of generous exemptions and light-touch compliance. Today, it’s about accuracy, timing, and structure.
Whether you are a crypto investor, tech founder, or simply someone with assets that have grown in value, these Capital Gains Tax UK changes matter. And with tax bills getting larger and exemptions getting smaller, the cost of doing nothing about Capital Gains Tax UK is rising.
Get in touch if you have any questions about how the changes may impact you. You will have more possibilities the earlier we begin.
Get in touch with Crypto Accountants today for a confidential CGT review. We speak crypto. We know tax.
