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How to sell Bitcoin in the UK and cash out to your bank

Most guides stop at buying. This one covers the other direction: turning Bitcoin back into pounds in a UK bank account, safely, and keeping the records HMRC expects.

General information, not financial or tax advice. We do not name or link to any exchange. Check any firm yourself on the FCA Financial Services Register.

Before you sell

To sell, you normally send your Bitcoin to a platform that will buy it from you and pay pounds to your bank. Before you send anything:

• Check the firm on the FCA Financial Services Register. Firms that offer crypto services to UK customers must be registered with the FCA for anti money laundering, or have permission to promote crypto. If you cannot find it, do not use it.
• Use an account you opened yourself, by typing the address, not by clicking a link someone sent you.
• Expect identity checks. From 1 January 2026, UK crypto firms must also collect your National Insurance number or Unique Taxpayer Reference for HMRC (see GOV.UK: Information you need to give to UK cryptoasset service providers).
• Remember most crypto is not covered by the Financial Ombudsman or the FSCS if things go wrong.

Moving coins from your wallet back to a platform

If your Bitcoin is in your own wallet, the steps are the reverse of moving it off an exchange:

1. In your platform account, find the Bitcoin deposit address. Check it is for the Bitcoin network, not another network or token.
2. Send a small test amount first and wait until it arrives.
3. Check the first and last characters of the address on your wallet screen, or hardware wallet screen, match before you confirm.
4. Choose a sensible network fee. Our lesson on fees and the mempool explains how.
5. Then send the rest.

A Bitcoin payment cannot be reversed. If you send to the wrong address, it is almost always gone.

Withdrawing to a UK bank

Once the platform sells your Bitcoin, you withdraw pounds to a bank account in your own name. A few things are normal:

• Some UK banks limit or block payments to and from crypto firms, or ask what a payment is for. Answer honestly.
• Large or unusual withdrawals can be held for extra checks.
• Withdraw only to your own account. A platform or "agent" that asks you to use someone else's account is a red flag.

Tax: selling is a disposal

HMRC treats selling Bitcoin for pounds as a disposal, so Capital Gains Tax can apply to any gain. Moving coins between your own wallets is not a disposal. Read our Bitcoin tax UK guide and the shorter UK tax pointer, then check GOV.UK: Check if you need to pay tax when you sell cryptoassets.

Keep the date, amount, value in pounds and fees for every sale. Download platform statements before you close an account.

Scam warning

Selling is when scammers strike. Watch for:

• "Buyers" who message you on social media offering a better rate, or asking you to send first.
• Fake "support staff" who contact you, or appear in search ads, and ask for your recovery words or remote access to your device.
• Sites that show a big balance but demand a "fee" or "tax" before you can withdraw. That is a scam. Real HMRC tax is never paid to a platform to unlock funds.

Nobody genuine ever needs your recovery words. See Avoiding scams and how to report a scam.

Checklist

• Firm found on the FCA register
• Account opened by me, address typed by me
• Bitcoin network deposit address checked
• Test amount sent and arrived
• Withdrawal only to my own bank account
• Sale details saved for tax
• Nobody has my recovery words

Key takeaways

Official sources

Checked 2 November 2026. Rules change, so always check the latest version.

• FCA Financial Services Register
• FCA: Crypto basics (InvestSmart)
• GOV.UK: Check if you need to pay tax when you sell cryptoassets
• GOV.UK: Information you need to give to UK cryptoasset service providers
• Report Fraud (replaced Action Fraud)

Not financial advice. General education only. Bitcoin prices can swing hard. Never put in more than you can afford to lose, and do your own research.