To transfer bitcoin to a UK bank account, sell it for pounds on a platform that offers sterling withdrawals, then withdraw the pounds by bank transfer to an account in your own name. Send a small test amount first. In the UK, that sale is also a disposal for Capital Gains Tax.
This is an evergreen how-to. This desk read HMRC’s crypto tax guidance, GOV.UK’s allowance page, the FCA’s crypto basics page and Pay.UK’s Faster Payment System page on 24 October 2026. It names no platform: we checked no firm’s register entry, and choosing one is your call.
How to transfer bitcoin to a bank account, step by step
A bank account holds pounds, not bitcoin, so the transfer is really a sale followed by a payment.
- Pick a platform that pays out GBP. Before you sign up, check where it stands with the FCA; our guide to what happens if your exchange isn’t FCA authorised explains the states a firm can be in.
- Move the bitcoin to it. If your coins sit in your own wallet, send them to the deposit address the platform gives you.
- Sell for pounds. This is the moment that matters for tax.
- Withdraw the GBP to your bank. Use an account in your own name and send a small amount first.
- Save the paperwork before you close the tab.
How fast is the bank transfer, and is there a limit?
Pay.UK says the Faster Payment System is available day and night, 365 days a year, and supports real-time payments of up to £1m. That is the scheme’s ceiling, not your bank’s. Pay.UK’s own footnote points to individual bank and building society transaction limits, and this desk read no bank’s limit, so check yours before moving a large sum.
Do you pay tax when you sell bitcoin for pounds?
You can. HMRC’s crypto tax guidance (last updated 5 October 2026) lists selling tokens as a disposal for Capital Gains Tax. If your total gain for the tax year, 6 April to 5 April, is above the tax-free allowance, currently £3,000 per GOV.UK, you must report it. Report it through a Self Assessment return, completed in pound sterling in the cryptoasset section, or through the Capital Gains Tax real time service. Spending bitcoin counts too; see every UK spend is a disposal.
How is the gain worked out?
By pooling. HMRC says to group each type of token into a pool and track its average cost. Its own worked example: 400 tokens costing £500 in total average £1.25 each, so selling 200 uses a cost of £250. Bitcoin bought on the same day as the sale, or within 30 days of it, is not pooled; HMRC sends you to the share rules in helpsheet HS284 instead.
What records does HMRC want?
For each pool, HMRC lists records per transaction, including the type of tokens, the number left, their value in pound sterling, bank statements, and pooled costs before and after the disposal. HMRC also warns that exchange reports are not tax calculations and will not keep track of your pooled costs: you must keep your own records. Software can help; see our Recap review.
Questions readers ask
How do I send BTC to my bank account?
You cannot send bitcoin to a bank account directly, because the account holds pounds. Sell the bitcoin for GBP on a platform that pays out sterling, then withdraw the pounds by bank transfer to an account in your own name. Send a small amount first and check it lands. In the UK, the sale is a disposal for Capital Gains Tax.
Do I pay tax when I sell bitcoin for pounds?
You may. HMRC treats selling tokens as a disposal for Capital Gains Tax. Tax is due only if your total gains for the tax year, 6 April to 5 April, are above the tax-free allowance, currently £3,000 per GOV.UK, and above it you must report the gain. Your gain depends on the pooled cost of your bitcoin. This is not personal tax advice.
How long does it take to withdraw crypto to a UK bank?
It depends on the platform, which sets its own processing time, and on your bank; this desk has no reliable figure. Pay.UK says the Faster Payment System runs day and night, 365 days a year, and supports real-time payments, but that describes the payment rail, not how quickly a platform releases your money. Check your platform’s own withdrawal terms.
The risk is yours
The FCA’s crypto basics page says crypto is largely unregulated in the UK, so Financial Services Compensation Scheme cover is highly unlikely, and that you should be prepared to lose all your money. Nothing here is financial or tax advice.