This comprehensive guide demystifies UK cryptocurrency capital gains tax for investors and traders. It addresses two critical tax types: capital gains tax (10-20%, rising to 18-24% from April 2025) triggered by selling, swapping, or using crypto, and income tax (0-45%) from mining, staking, and airdrops. The article outlines current tax-free allowances (£6,000 for capital gains, £12,570 for income) and upcoming reductions. It explains HMRC reporting deadlines (January 31 annually via Self Assessment), calculation methods using exchange statements and tax software, and HMRC's tracking capabilities through centralized exchanges. Crucially, it distinguishes legal tax optimization—utilizing allowances, offsetting losses, timing disposals, holding assets—from illegal tax evasion. The guide emphasizes that HMRC can track transactions on regulated platforms like Gate, making compliance essential. It concludes that professional tax advice is vital given evolving regulations and complex DeFi activities.