Bought or sold NFTs in 2025? Here’s how HMRC taxes NFTs in the UK — capital gains, income rules, and common mistakes.
NFTs aren’t just art — they’re taxable assets. In 2025, HMRC continues to treat most NFT activity as taxable under Capital Gains Tax or sometimes Income Tax. If you’ve been trading NFTs, here’s what you need to know.
Buying and Selling NFTs
- Buy low, sell high → profits are Capital Gains Tax (CGT).
- The £3,000 annual CGT allowance still applies.
Creating and Selling NFT Art
If you mint NFTs and sell them, this is usually income, not a capital gain. HMRC sees it as self-employment income.
Transfers Between Wallets
Even moving NFTs between your own wallets can sometimes count as a disposal if the valuation changes.
Common Mistakes
- Forgetting to track minting costs.
- Assuming “lost” NFTs = allowable loss (not always).
- Ignoring marketplace fees in calculations.
Conclusion
NFTs are taxable. The rules are evolving, but the liability is real.
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