Binance UK Crypto Tax: What to Report to HMRC in 2026/27
Which Binance reports you need, how converts and Simple Earn are taxed, and the CSVs that actually import cleanly for a UK Self Assessment.
Binance is still the largest exchange most UK residents use, but its reporting is scattered across half a dozen menus and the tax picture changes depending on which product you touched. Here is a practical guide to what needs to appear on your 2026/27 Self Assessment if Binance is part of your stack.
Which Binance are you actually using
Binance closed its UK-branded product in 2023 and UK residents now trade on the main Binance.com platform under FCA marketing restrictions. That matters for tax because the CSVs come from the global platform, denominated in USDT or BUSD equivalents on most trade rows, and every disposal has to be re-priced to GBP at the block or trade timestamp. HMRC does not accept USD or USDT proceeds — the SA108 wants GBP.
CryptoLens auto-converts each Binance trade to GBP using CoinGecko historical rates on the trade timestamp. If you do this by hand, use the daily close from a reputable source and keep the workings for six years.
Reports you need to export
From the Binance web dashboard, go to Wallet then Transaction History and generate the following:
- **Spot trade history** — every buy, sell and convert on the spot market. This is the bulk of your CGT ledger. - **Convert history** — the small-print product where you swap crypto to crypto through Binance's aggregator. Every convert is a disposal of the outgoing coin. - **Deposit and withdrawal history** — needed to reconcile external transfers so the tool does not misread a self-transfer as income. - **Distribution history** — Launchpool rewards, Learn and Earn credits, airdrops, referral bonuses. All of these are miscellaneous income at receipt. - **Simple Earn history** (Flexible and Locked) — interest-like rewards, income at receipt. - **Staking history** — for ETH, SOL, ADA and DOT native staking done through Binance. - **Futures P&L (if any)** — see below, treated separately.
Export as CSV for the full 2026/27 tax year (6 April 2026 to 5 April 2027).
What is taxable capital gains
Every one of the following is a disposal for CGT under HMRC CG12100:
- Sell crypto for GBP, EUR or USD. - Convert or trade one crypto for another — the outgoing coin is disposed at the GBP market value of what you received. - Use crypto to pay a fee denominated in another asset (BNB fee discount is still a disposal of BNB). - Withdraw to a third party's wallet as a gift or payment (see <a href="/blog/crypto-gift-tax-uk-inheritance-planning">gifting rules</a>).
Applying the Section 104 pool plus the same-day and 30-day matching rules is mandatory, not optional. See <a href="/blog/section-104-pooling-crypto">Section 104 pooling</a> and <a href="/blog/bed-and-breakfast-30-day-rule-crypto-explained">the 30-day rule</a> for the mechanics.
What is income, not capital gains
- Simple Earn interest — miscellaneous income at the GBP value on the day it lands. - Launchpool rewards — miscellaneous income at receipt. - Learn and Earn — miscellaneous income at receipt. - Referral bonuses paid in crypto — miscellaneous income at receipt. - Locked staking rewards — miscellaneous income at receipt under CRYPTO21200. - Airdrops that required no service — capital acquisition at nil cost per CRYPTO21250; airdrops received for a service are income.
The receipt value becomes the cost basis for the tokens; when you later dispose of them there is a second, CGT event on any change in value since receipt.
Futures, options and margin
Binance USDT-margined futures pnl is realised in USDT. HMRC has not published bespoke guidance for perpetual futures on non-UK-regulated venues; the safe reading is that each closing trade is a disposal for CGT, with realised pnl computed in GBP. See <a href="/blog/crypto-perpetual-futures-tax-uk">the perp futures guide</a> for the detailed treatment. Do not report Binance futures as spread betting — spread-bet exemption only applies to FCA-regulated spread betting products.
CARF and what Binance will send HMRC
Under the Crypto-Asset Reporting Framework, in force in the UK from 1 January 2026, Binance is treated as a Reporting Crypto-Asset Service Provider for UK-resident users. Your name, date of birth, National Insurance number, address and wallet addresses used to withdraw are collected during KYC. From 2027, HMRC will receive an annual summary of your disposals, exchanges and cross-border transfers over the relevant thresholds. Read <a href="/blog/carf-what-uk-crypto-users-need-to-know-2026">CARF for UK users</a> for the full picture.
Practically: HMRC will know what you traded, when, and (for withdrawals) where the coins went. Under-reporting is a much worse gamble in 2026/27 than it was in prior years.
Fees and BNB fee discount
Trading fees paid in the traded coin reduce the disposal proceeds on that trade under HMRC CG15250 (incidental costs of disposal). Fees paid in BNB with the fee discount are themselves a small disposal of BNB — every fee tick is a mini-CGT event. This is annoying manually and trivial with a tool: <a href="/import">import your CSV</a>, and CryptoLens attributes each fee to the correct trade automatically.
Step by step: filing
1. Export the eight report types above from Binance. 2. Drop them all into <a href="/import">/import</a> — the tool detects each format. 3. Add any external wallet addresses you deposited into so we can rebuild the full picture. 4. Open <a href="/tax">/tax</a> to review the Section 104 pool, disposals and income totals. 5. If Binance is your only exchange, expect the tool to reconcile withdrawals cleanly. Otherwise use <a href="/carf-check">/carf-check</a> to see whether an unlinked wallet is missing. 6. Export SA108 CSV plus the audit trail PDF and keep them for six years.
Common Binance-specific mistakes
- **Ignoring "Convert" as if it were a rebalance.** A convert is a disposal. Treat it the same as a spot trade. - **Missing Locked Staking rewards.** They accrue daily but land in a separate report; forgetting them under-reports income. - **Double-counting internal transfers.** Binance's Spot to Funding wallet moves are internal, not disposals. The distribution report can look confusing. - **Ignoring dust conversions.** Converting dust to BNB is a disposal of every dust coin. It is tiny per row and enormous across a year. - **Treating stablecoin trades as tax-neutral.** GBP-to-USDT and USDT-to-USDT are disposals. See <a href="/blog/stablecoin-tax-uk-usdc-usdt">stablecoin tax UK</a>.
Frequently asked questions
Does Binance report to HMRC?
From 2026 onwards, yes. Binance is a Reporting Crypto-Asset Service Provider under the OECD Crypto-Asset Reporting Framework, which the UK has adopted from 1 January 2026. HMRC will receive annual reports on UK-resident users' disposals, exchanges and withdrawals starting in 2027 for the 2026 calendar year.
Do I need to report a Binance Convert if I only swapped USDT to BUSD?
Yes. Every crypto-to-crypto swap, including stablecoin-to-stablecoin, is a disposal under HMRC CG12100. The gain or loss is usually tiny for like-for-like stablecoins but the disposal still exists and must be reported if you are otherwise filing.
Is Simple Earn interest taxed as income or capital gains?
Income. Simple Earn returns are treated as miscellaneous income at the GBP value on the day received, per HMRC CRYPTO21200. When you later sell the received tokens, that is a separate capital gains event on the change in value since receipt.
Can I deduct Binance trading fees?
Yes. Fees paid on a trade reduce the disposal proceeds under HMRC CG15250. Fees paid in BNB with the fee discount are themselves a small disposal of BNB, which CryptoLens computes automatically when you import the trade history.
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