Donating crypto to UK charities: what tax relief actually applies
Quick answer: Donating appreciated cryptoassets directly to a UK charity is more tax-efficient than selling them and donating the cash — but the headline often gets oversold.
Donating appreciated cryptoassets directly to a UK charity is more tax-efficient than selling them and donating the cash — but the headline often gets oversold. UK donors get CGT relief, not Income Tax relief, on a direct crypto gift. This guide sets out exactly which reliefs apply, where the s431 ITA 2007 'qualifying investment' rule fits in, and how charities can accept cryptoassets in practice.
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Primary source: https://www.gov.uk/income-tax-reliefs/charity-donations-tax-relief
What reliefs apply — and what doesn't
For a UK donor giving an asset they hold as an investment, two distinct reliefs can be in play. The Capital Gains Tax relief in s257 TCGA 1992 (see legislation.gov.uk: TCGA 1992 s257) treats a gift to a UK charity as disposed of at a 'no gain/no loss' value, so the donor pays no CGT on the unrealised gain. This relief applies to any asset, including cryptoassets and NFTs.
The Income Tax relief in s431 ITA 2007 (legislation.gov.uk: ITA 2007 s431, sometimes called 'gift of shares to charity' relief) gives a deduction from the donor's total income equal to the full market value of the gift. This relief is restricted to a closed list of qualifying investments: shares listed on a recognised stock exchange, AIM-traded shares, units in UCITS and AUTs, certain offshore funds, and qualifying interests in UK land. Cryptoassets are not on the list.
The result for crypto is that you keep the CGT saving but not the Income Tax deduction — significantly less generous than for listed shares, but still better than selling first and donating the net of CGT.
Why selling and donating cash is usually worse
If you sell appreciated crypto and donate the cash via Gift Aid: you pay CGT on the gain (up to 24% in 2026/27), the charity then receives the net cash plus 25% basic-rate Gift Aid, and you can claim higher-rate relief on the gross donation via Self Assessment.
If you instead gift the crypto direct to the charity (and the charity sells it): no CGT is due on your gain, but no Gift Aid is added and no Income Tax deduction is available.
The 'better' route depends on the size of the unrealised gain and your marginal rate. Our charitable giving tax calculator runs both numbers on your inputs side by side.
How charities actually accept cryptoassets
Smaller UK charities often accept crypto via a payment gateway (such as The Giving Block, BVNK or Coinbase Commerce). The gateway converts the crypto to GBP at the point of receipt and pays the charity in cash, removing the charity's exposure to price volatility and the operational burden of holding crypto.
Larger charities may hold their own custodial wallets and decide when to convert. Either way, HMRC treats the donation as a disposal at market value by the donor — and the charity's subsequent sale within its own tax-exempt account is not chargeable.
The Charities Aid Foundation (CAF), Stewardship and CAFonline are examples of UK donor-advised-fund providers that can accept crypto, give an immediate tax receipt and let donors recommend grants to other charities over time.
Legacies of crypto and the 36% IHT rate
Leaving crypto to a UK charity by will is fully exempt from IHT (s23 IHTA 1984) — no charge on the value passing. Leaving at least 10% of the net estate to charity also reduces the IHT rate on the rest of the estate from 40% to 36% under Schedule 1A IHTA 1984 (see HMRC's reduced-rate calculator at gov.uk/inheritance-tax-reduced-rate-calculator).
For a will to be effective for crypto, the executor needs to be able to access the assets. See our companion guides on digital assets in your will and how UK executors handle hardware wallets and multisig in probate.
Common questions
- Can I get Gift Aid on a crypto donation?
- No — Gift Aid is restricted by HMRC to gifts of money. A direct crypto gift does not qualify. You would need to sell the crypto, pay any CGT due, and then donate the net cash via Gift Aid to get the 25% top-up plus higher-rate relief.
- Does the donation need to go to a UK charity?
- For UK tax relief, the recipient must be a UK-registered charity (Charity Commission for England & Wales or OSCR for Scotland), a CIO, a CASC, or a charity in the EU/EEA recognised by HMRC under the FA 2010 definition. International charities without UK recognition do not generate UK tax relief.
- What happens if the charity sells the crypto immediately?
- The charity's sale is exempt from UK tax as a charity. The donor's tax position is unaffected by what the charity does next — the donor got CGT no-gain-no-loss treatment at the moment of the gift.
- Could the rules be extended to give Income Tax relief on crypto?
- Possibly. The Treasury could add cryptoassets to the s431 ITA 2007 qualifying list by Statutory Instrument. There is no announced timetable to do so. Until that change happens, the current rule — CGT relief only — applies.