UK buy-and-hold sizing note (September 2026)
For: Audie-glitch — assumed UK tax resident; confirm if you are elsewhere.
Not financial or tax advice. Confirm numbers with HMRC or a qualified adviser before acting.
One-page plan
- Only surplus cash — after emergency fund (3–6 months expenses), pension auto-enrolment, and any high-interest debt payoff.
- Size: 3–7% of net worth in crypto total, or £50–£200 per payday if that is less than 3%. Never from credit.
- What to buy: BTC only as default; optional small ETH sleeve (e.g. 70/30 BTC/ETH) if you want a second survivor asset.
- How: Recurring buy on an FCA-registered venue (Coinbase, Kraken, Gemini UK, etc.). Enable 2FA (prefer hardware key).
- Custody: Withdraw to a wallet you control once the position is worth the fee, or hold on the regulated platform if you accept counterparty risk.
- Hold: Plan for 5–10 years and a 50–80% drawdown without selling.
- Tax: Track every buy in GBP; use Section 104 pooling; report disposals on SA108 when required.
UK tax (2026/27 tax year)
HMRC treats most crypto as property, not currency. Buying BTC/ETH with GBP is not a taxable event. Selling, swapping, spending, or gifting (except to a spouse) crystallises a gain or loss in pounds.
| Item | Figure | Notes |
|---|---|---|
| Annual CGT exempt amount | £3,000 | Shared across all capital gains, not per asset |
| CGT rate (basic-rate band) | 18% | On gains above the allowance, within unused basic-rate band |
| CGT rate (higher/additional) | 24% | On gains above basic-rate band |
| Cost basis method | Section 104 pooling | Average cost per token type; same-day and 30-day rules can override |
| Staking / airdrop rewards | Income tax | Fair market value in GBP when received; later disposal also triggers CGT |
| Self Assessment | Box SA108 crypto section | If gains exceed allowance or proceeds exceed reporting thresholds |
Recurring DCA creates many small lots in the pool. That is fine — but you must keep records (date, GBP paid, fees, quantity). Exchanges increasingly report to HMRC under CARF/DAC8-style rules; “I forgot” is not a defence.
Software: Koinly, CoinTracker, or exchange CSV exports. Budget ~£50–£100/year if you DCA weekly.
Sources (secondary summaries — verify at gov.uk/hmrc): CalcHub UK CGT crypto 2026/27; SalaryTax.uk SA108 walkthrough.
Worked sizing examples
Assumptions: take-home £3,000/month, £15,000 emergency fund already held, no high-interest debt, £0 current crypto.
| Profile | Monthly surplus | Suggested DCA | Annual buy | % of net worth if NW = £80k |
|---|---|---|---|---|
| Conservative | £200 | £75/mo BTC | £900 | ~1.1% added per year |
| Moderate | £400 | £150/mo BTC | £1,800 | ~2.3% |
| Upper bound | £600+ | £250/mo BTC (+ optional £50 ETH) | £3,600 | ~4.5% |
Rules:
- If one buy is more than 10% of monthly surplus, you are probably oversizing.
- If total crypto would exceed 10% of net worth within two years at this rate, slow down.
- Do not size from expected bounty/hackathon income until it is paid to your wallet.
Where to buy (UK)
Use a firm on the FCA cryptoasset register (search “cryptoasset”). Avoid offshore venues that block UK users or skip identity checks — withdrawal friction and enforcement risk are common.
Sequence:
- Complete KYC on one registered exchange.
- Link a UK bank account; set a standing/recurring buy (many apps support this).
- After ~£500–£1,000 notional, decide: leave on exchange or withdraw to self-custody.
- Export CSV after each tax year.
What this note refuses
- Leverage, CFDs, perpetuals (FCA banned retail crypto derivatives for UK consumers).
- “Quick gain” memecoins as the core sleeve.
- Sending crypto to an AI, agent, or “manager” wallet.
- Tax evasion or unreported disposals.
Optional: feed the plan with engineering income
The KeeperHub feature bounty (two × $500 stablecoins, build 6–18 Sep 2026) can add ~£750 if won — treat as a one-off bonus to convert or hold, not as recurring salary. Prep: keeperhub-prep-2105.md.
Checklist before first buy
- Emergency fund intact
- FCA-registered account opened, 2FA on
- Recurring amount set (£50–£250 typical)
- Tax tracking tool chosen
- Written down: “I will not sell a 60% drawdown unless my life situation changes”