Crypto Tax at 18% vs 24%: The UK Basic vs Higher Rate Rule for 2026/27

The 18 percent and 24 percent Capital Gains Tax rates for 2026/27 are not simply "basic-rate taxpayers get 18, higher-rate taxpayers get 24". Part of a gain can fall in each band even for a higher-rate earner, and pensions or Gift Aid can extend the basic-rate band and reduce your CGT bill. Here is exactly how it works, with three worked examples.

The rates for 2026/27

- **Annual Exempt Amount (AEA):** £3,000 per person. - **Basic-rate CGT on crypto and other assets:** 18 percent. - **Higher-rate CGT on crypto and other assets:** 24 percent. - **Basic-rate income band:** up to £37,700 of taxable income above the personal allowance (which is £12,570 for most people). - **Personal allowance is tapered** to zero between £100,000 and £125,140 of adjusted net income, which effectively pulls more of your gain into the 24 percent band at those levels.

The £50,270 figure many people quote is the sum of £12,570 personal allowance plus £37,700 basic-rate band. Above that, income is taxed at 40 percent and the marginal CGT rate rises to 24 percent.

The rule that most guides skip

Capital gains stack on top of taxable income. The 24 percent CGT rate applies to the portion of your gain that would fall above the £50,270 threshold if you added the gain onto your income. Everything below the threshold is taxed at 18 percent. It is a marginal band system, not a flat cliff.

That means someone with £45,000 salary and a £12,000 gain has part of the gain in the basic band and part in the higher band — not the whole gain at 24 percent.

Example 1: pure basic-rate

- Salary: £30,000. Dividends: £5,000. Total income: £35,000. - Taxable income after personal allowance: £22,430. - Crypto gain in the year: £8,000 (after fees, using <a href="/tax">CryptoLens</a>). - AEA applied: £3,000. Taxable gain: £5,000.

Room left in basic band: £37,700 minus £22,430 = £15,270. The whole £5,000 taxable gain fits inside the basic band.

CGT: £5,000 x 18 percent = **£900**.

Example 2: pure higher-rate

- Salary: £70,000. No dividends. Taxable income after personal allowance: £57,430. - Crypto gain: £10,000. - AEA applied: £3,000. Taxable gain: £7,000.

The taxpayer is already well above the £50,270 threshold, so all £7,000 sits in the higher band.

CGT: £7,000 x 24 percent = **£1,680**.

Example 3: the split case people miss

- Salary: £45,000. Taxable income after personal allowance: £32,430. - Crypto gain: £12,000. - AEA applied: £3,000. Taxable gain: £9,000.

Room left in basic band: £37,700 minus £32,430 = £5,270. The first £5,270 of the taxable gain is taxed at 18 percent; the remaining £3,730 sits above the threshold and is taxed at 24 percent.

CGT: (£5,270 x 18 percent) + (£3,730 x 24 percent) = £948.60 + £895.20 = **£1,843.80**.

This split is where most amateur calculators are wrong by hundreds of pounds. HMRC's SA108 notes explain the arithmetic; CryptoLens applies it automatically when you set your total income on the /tax page.

Extending the basic band with pensions or Gift Aid

Personal pension contributions and Gift Aid donations extend the basic-rate band by the gross amount contributed. If you contribute £2,000 net to a personal pension in a year, HMRC treats it as £2,500 gross, and your basic-rate band becomes £37,700 + £2,500 = £40,200.

In Example 3, that pension contribution would move £2,500 of gain from 24 percent to 18 percent, saving £2,500 x 6 percent = £150 in CGT. Combined with basic-rate tax relief on the pension itself, this is one of the few legal ways to reduce a UK crypto tax bill after the tax year has ended (you have until 31 January 2028 to make the contribution and elect for it to count in 2026/27 via carry-back… actually you have to make it in-year — pension carry-back was abolished in 2001; check with your accountant).

Scotland

Scottish taxpayers use different income tax bands but the same CGT bands as the rest of the UK. The threshold for the 24 percent CGT rate remains £50,270 of income for everyone, regardless of Scottish resident status.

Interaction with the £3,000 Annual Exempt Amount

The AEA is applied to the whole net gain before the band split. You cannot allocate it to just the higher-band slice. In Example 3, the £3,000 came off the top of the gain first, then the remaining £9,000 was split across the two bands.

Losses

Allowable losses on other disposals in the same tax year reduce net gains before the AEA. Brought-forward losses from prior tax years reduce net gains after the AEA. See <a href="/blog/crypto-losses-hmrc">reporting crypto losses to HMRC</a> for the mechanics — and <a href="/loss-harvest">/loss-harvest</a> to identify realisable losses in your holdings before 5 April 2027.

The bottom line

Do not assume your marginal income tax band tells you your CGT rate on a gain. If your income sits anywhere near the £50,270 threshold, some of the gain is at 18 percent and some at 24 percent. CryptoLens shows the exact split when you enter your income on <a href="/tax">/tax</a>. If you are an accountant filing on behalf of clients, <a href="/accountants">the practice tools</a> handle multiple clients at once.