Donating Crypto to Charity UK: Tax Relief and CGT Rules
How donating cryptocurrency to charity works for UK tax — the Capital Gains Tax exemption, when it applies, the tainted-donation catch, and what records to keep.
Giving cryptocurrency to a registered charity is one of the more tax-efficient things a UK holder can do with appreciated coins — but the rules have conditions, and one common pitfall can remove the relief entirely.
No Capital Gains Tax on qualifying gifts to charity
When you gift an asset, including crypto, to a UK charity, the disposal is normally treated as taking place at "no gain, no loss." That means you don't pay Capital Gains Tax on the increase in value, even if the coins have risen substantially since you bought them. For someone sitting on a large unrealised gain, donating the coins directly can be far more efficient than selling, paying CGT, and donating the cash.
How it differs from Gift Aid
Gift Aid applies to cash donations and lets the charity reclaim basic-rate tax while higher-rate donors claim extra relief. Crypto is not cash, so a direct crypto gift doesn't go through Gift Aid in the same way. The main benefit on a crypto gift is the CGT exemption on the disposal. If you want Gift Aid treatment, you would generally need to sell the crypto first — which triggers CGT — and donate the proceeds. Which route is better depends on the size of your gain.
The tainted donation catch
The CGT relief assumes a genuine, unconditional gift. If you receive a benefit in return — or the arrangement is structured to get something back — the "tainted donation" rules can deny relief. Donating to a charity you're connected with, or expecting anything material in exchange, is where this bites. A clean, no-strings gift to a registered charity is what qualifies.
Make sure the charity can receive crypto
Not every charity is set up to accept cryptoassets. Some use a crypto-donation processor; others can only take cash. If the charity converts your crypto to GBP on receipt through an intermediary, check whether the gift is structured as a crypto gift to the charity or a sale on your behalf, because that affects the tax position.
Records to keep
Keep evidence of the donation: the wallet address, date, token amount, GBP value at the time, and confirmation from the charity. CryptoLens can show you the embedded gain in a holding before you give it away, so you understand exactly how much CGT the donation is saving.
This is general information, not personal tax advice; for large gifts, take professional advice.
Frequently asked questions
Do I pay Capital Gains Tax when I donate crypto to charity?
Normally no. A genuine gift of crypto to a UK charity is treated as a no-gain, no-loss disposal, so the increase in value isn't taxed — which can be more efficient than selling and donating cash.
Can I claim Gift Aid on a crypto donation?
Not directly — Gift Aid applies to cash. A direct crypto gift gives you the CGT exemption instead. To use Gift Aid you'd generally sell the crypto first (triggering CGT) and donate the proceeds.
Work out the gain before you donate
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