# How to sell crypto for pounds in the UK

Use an FCA-registered exchange where you hold or can deposit crypto, sell to GBP, then withdraw to your bank. Note the sale date, tokens sold, sterling received, and fees for HMRC. You may owe Capital Gains Tax on any profit above your £3,000 annual exempt amount.

## Key facts
- Selling crypto for pounds is a disposal for CGT purposes.
- Withdrawals can take minutes to several working days.
- Your bank may ask about large incoming payments.
- Keep records even if you reinvest the cash elsewhere.
- Swapping one token for another is also a disposal — not just cashing out.

## Choose where to sell

The simplest route is the FCA-registered exchange where you bought the crypto. Check withdrawal fees, minimum amounts, and supported bank accounts. Verify the firm on the FCA register before transferring assets.
## Place a sell order

Most apps offer ‘market’ sells (instant at current price) or ‘limit’ sells (at a price you set). Market orders are easier for beginners. The sterling amount shown is before fees — check the net amount you will receive.
## Withdraw to your bank

Link a UK bank account in your name. Faster Payments often arrive within hours; first withdrawals may take longer while the exchange verifies you. Large amounts may trigger additional checks.
## Tax when you sell

HMRC treats selling crypto for pounds as a Capital Gains Tax disposal. Calculate gain as sterling proceeds minus your pooled acquisition cost and allowable fees. Report through Self Assessment if gains exceed the annual exempt amount (£3,000 for 2025/26) or if you must file for other reasons. See our SA108 filing guide and CGT worked example.
## If the exchange freezes withdrawals

Platform failures happen — Celsius and others left customers unable to access funds. This is why many people move long-term holdings to self-custody. FSCS does not cover crypto on exchanges.

## FAQs
### Do I pay tax if I sell at a loss?

You may not owe CGT, but you should still record the loss. Losses can offset other gains in the same tax year or be carried forward.
### Can I sell peer-to-peer for cash?

Yes, but you still owe tax on any gain and face higher fraud risk. FCA-registered exchanges are safer for most people.

## Sources

- [HMRC — Check if you need to pay tax when you dispose of cryptoassets](https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-dispose-of-cryptoassets)
- [FCA — Cryptoassets for consumers](https://www.fca.org.uk/consumers/cryptoassets)

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— Digital Assets UK (https://digital-assets.co.uk/buying/sell-crypto-for-pounds-uk/), reviewed 2026-06-23. Source: https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-dispose-of-cryptoassets