# NFTs explained for UK holders

NFTs are cryptoassets for HMRC purposes in most cases. Buying and selling can trigger CGT. Owning an NFT does not automatically give you copyright in the underlying artwork.

## Key facts
- Each NFT is typically unique or part of a limited series.
- HMRC treats NFTs as cryptoassets unless they are otherwise taxable as trading stock.
- FCA regulation depends on whether the NFT qualifies as a specified investment.
- Copyright in the underlying work remains with the creator unless assigned.

## What NFTs are

An NFT is a token on a blockchain that points to or represents a digital or linked physical item. Ownership of the token is recorded on-chain; the media file may be stored separately.
## Tax on NFT trades

Selling an NFT for crypto or fiat is a disposal. If you create and sell NFTs regularly, HMRC may treat you as trading — Income Tax would apply instead of or as well as CGT.
## Regulatory status

The FCA considers NFTs on a case-by-case basis. Collectible NFTs may fall outside the regulatory perimeter; NFTs packaged as investments may not.

## FAQs
### Do I own the image if I buy the NFT?

You own the token, not necessarily the intellectual property. Check the terms of the sale.

## Sources

- [HMRC — Cryptoassets Manual (NFTs)](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual)
- [FCA — Cryptoassets for consumers](https://www.fca.org.uk/consumers/cryptoassets)

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— Digital Assets UK (https://digital-assets.co.uk/assets/nfts/), reviewed 2026-06-23. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual