Guide on how to report Kraken crypto taxes in United Kingdom?

Introduction

Do you feel unsure about reporting your Kraken crypto taxes in the United Kingdom? Crypto taxes can seem complicated. You are in the right place for clear guidance.

Tax offices worldwide want more crypto transaction data. This global trend means platforms now often share your activity with tax authorities.

Waltio makes this process easier for you. Our tool calculates your crypto taxes. It helps you complete the correct forms. This ensures you comply with United Kingdom rules.

This guide covers everything you need. It will help you report your Kraken activity.

What is Kraken?

Kraken is a major crypto exchange. It launched in 2011. Kraken operates in the United Kingdom through PAYWARD LTD (UK).

You should check its official registration status. The FCA is the local financial regulator. This affects how data is shared.

However, it does not change your tax duties. You still must report your crypto activity in the United Kingdom. This is true whether Kraken is registered or not.

How does the HMRC know I have crypto on Kraken?

Global efforts against tax avoidance are growing stronger. Tax authorities now have more ways to get your transaction data.

DAC8 rules are now in place across the EU. DAC8 is a set of rules for sharing tax information. This has greatly boosted international tax cooperation.

As of January 1, 2026, Kraken and all other regulated platforms must report your full transaction history. They send this data directly to tax offices. This happens automatically.

Learn more about DAC8 and how it affects you

How are Kraken transactions taxable in United Kingdom?

HMRC’s Cryptoasset Manual explains how crypto activities are taxed. Most crypto transactions fall under Capital Gains Tax (CGT). CGT is a tax on the profit you make from selling assets.

Here are events that create a taxable event:

• Selling crypto for regular money, like GBP.
• Using crypto to pay for goods or services.
• Trading one crypto for another.

Profits from these events are called “capital gains.” This means you pay tax on profits from selling or exchanging crypto.

Capital Gains Tax (CGT) rates are 10% for basic rate taxpayers. They are 20% for higher rate taxpayers. These rates apply to gains above the annual exempt amount. This amount is £3,000.

Income Tax rates increase with your income. They range from 20% to 45%.

HMRC might see you as a “professional trader” if you trade often and consistently. Then your profits would be subject to Income Tax. Always check the latest HMRC guidance. This confirms your exact tax status.

Comprehensive guide to crypto taxes in United Kingdom

How to calculate gains and losses of Kraken?

United Kingdom tax rules require specific ways to figure out crypto gains and losses. You must use “Section 104 pooling.” You also need to use specific “share matching” rules.

Under Section 104 pooling, all crypto of the same type form a “pool.” A pool is a group of identical cryptoassets. You calculate the average cost for all crypto in this pool.

When you sell, you use this average cost. This helps you find your gain or loss.

For example, you bought 1 BTC for £10,000 in 2018. You bought another 1 BTC for £30,000 in 2024. Then you sold 1 BTC for £35,000 in 2025.

Your pool would hold 2 BTC. Their total cost is £40,000. The average cost per BTC is £20,000. When you sell 1 BTC for £35,000, your gain is £15,000.

Special rules apply if you buy the same crypto within 30 days of selling it. These are the “30-day rule” or “bed and breakfasting” rule. These rules link your sale to these recent buys. They are used before pooling rules apply.

How to declare staking & earn products from Kraken?

HMRC usually treats staking rewards as miscellaneous income. This means they are income from a variety of sources. You will pay Income Tax on these rewards.

You must value the reward in GBP. Use its fair market value on the day you get it.

Airdrops are generally not taxable when you receive them. This is true if they are unexpected. Their acquisition cost is £0.

Remember the “double event.” This means two tax events happen. Receiving the reward is often Tax Event A (income). Selling that rewarded crypto later is Tax Event B (a capital gain or loss).

How do I declare my gains and losses for Kraken?

You report your crypto gains and losses. You do this on your Self Assessment tax return. You will use the SA100 main tax return form. Also, use the SA108 Capital Gains Summary supplementary page.

On the SA108, report your total capital gains and losses. This includes all crypto sales. List your calculated gain or loss for each taxable event. Also, show your total yearly net gain or loss.

Remember to use your Capital Gains Tax annual exempt amount. This amount is £3,000.

How to Import Kraken operations into Waltio?

Waltio helps you automate your tax calculations. You can import your Kraken transaction history. Use either API keys or upload CSV files.

📝 Description

This article explains how to connect your Kraken account to Waltio via the API.
👉 It allows you to import your transactions automatically, but some operations are not covered by the API.

⚠️ Warnings

• OTC transactions cannot be retrieved and must be added manually.
• If you import files containing API-read transactions, they will be duplicated in Waltio.
• If you delete or modify your API keys or permissions, synchronization will stop.
• Our API gives you a choice if you already have Kraken files in your Waltio account:
  1. Recover all data since the creation of your Kraken account.
  2. Recover all data since your last transaction in Waltio.

💡 Recommendations

• Use the Pro version of Kraken to create your API keys.
• Authorizations required: Query, Query Ledger Entries, Custom nonce window > 10000.
• You can add multiple Kraken APIs in Waltio.

📂 How to access your data

1. Log in to your Kraken Pro account and go to Create your API key.
2. Select the Create API Key tab in the Spot Trading API panel.
   

📤 How to export your data

1. Set a name for your key.
2. Select the following authorizations:
   • Query
   • Query Ledger Entries
   • Custom nonce window > 10000
     
3. Click on Generate key.

➕ How to add your data to Waltio

1. Go to Connect my API on Waltio.
2. Enter your Kraken API key.

Simplify your tax returns with Waltio

Waltio brings together all your exchanges and wallets. This makes your tax reporting simpler. Connect your accounts using API or file upload. You can track your crypto portfolio in real-time. Generate United Kingdom compliant tax reports in just one click.

Create your free account today. No credit card or KYC is required.