Funds, ETFs, and Crypto Profit

You’ll consider CGT when you sell or otherwise dispose of:

• Individual shares
• Units in funds/ETFs/investment trusts
• Cryptoassets

(All outside tax-sheltered accounts like ISAs or pensions.)

You won’t pay CGT on gains inside an ISA or pension; disposals in those wrappers are CGT-free.

Allowance: For 2025/26, most individuals can realise £3,000 of gains tax-free (you still need to record the figures if HMRC requires a return). Unused allowance doesn’t carry forward to future years. Couples can use two allowances if assets are held or transferred between spouses/civil partners before sale.

Rates: The main CGT rates are 18% (basic rate) and 24% (higher/additional rate). Your taxable gains sit on top of your other income to determine how much is charged at each rate. (Residential property gains use the same headline rates; special trust rates differ.)

Tip: If you’re close to the basic/higher-rate boundary, timing or splitting disposals across tax years can change how much of your gain is taxed at 18% vs 24%.

Working out the cost to set against your sale price follows HMRC’s share identification sequence:

1. Same-day rule – match shares sold with shares you bought on the same day.
2. 30-day rule – next, match with shares bought within 30 days after the sale (this is why classic “bed & breakfasting” doesn’t avoid tax).
3. Section 104 pool – everything else of the same class sits in a pooled holding with an average cost; remaining sold shares are matched here.

These rules also apply to many funds/ETFs. They’re the backbone of your gain/loss calculation for each disposal.

1. Work out proceeds (net of selling fees).
2. Identify the matching cost using the rules above (add buy fees here).
3. Gain/Loss = Proceeds – Matched cost.
4. Offset losses realised this year (and any carried-forward losses you’ve claimed with HMRC) against gains.
5. Apply your CGT allowance (£3,000) to any net gains left.
6. Tax what’s left at 18% and/or 24% based on where your total taxable income lands across the bands.

ISA angle: If you regularly realise gains, consider moving investments into an ISA (“Bed & ISA”) so future growth is CGT-free. (Remember trading costs/spreads and that disposals outside an ISA still count toward CGT in the year you sell.)

Allowance reference: AEA £3,000 for individuals in 2025/26.

Most investors report CGT in Self Assessment using SA108 (Capital Gains summary) alongside their SA100. Ftax automatically:

• Activates SA108 when you indicate disposals,
• Guides you to enter proceeds, allowable costs and losses,
• Performs validation checks before submission,
• Packages everything for a secure HMRC e-submission with a receipt.

For UK residential property, there’s a separate 60-day report & pay rule after completion; for shares, you normally report on your annual Self Assessment (unless HMRC’s real-time CGT service applies to your situation). See HMRC for the current position on deadlines and reporting routes.

• Ignoring the 30-day rule, which can unexpectedly increase the matched cost (and therefore the taxable gain).
• Forgetting reinvested income (e.g., accumulation fund distributions) that adjusts your cost base.
• Not recording fees (brokerage, SDRT, PTM levy) you can legitimately add to cost or deduct from proceeds.
• Missing the allowance timing—you can’t roll unused AEA into next year.