How Is Crypto Taxed in the UK

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Do you have to pay tax on crypto in the UK?

Yes – cryptocurrency is taxable in the UK. HMRC are clear that crypto may be subject to both Capital Gains Tax and Income Tax depending on the specific transaction.

Crypto assets aren’t considered as money or currency by key financial institutions. From a tax perspective, crypto assets are treated like shares and will be taxed accordingly.

Crypto traders and investors need to be aware of the wide array of transactions ranging from basic purchase and sell orders all the way through to hard forks, airdrops, staking, etc. The crypto industry is developing rapidly, and the position on tax has inevitably become more complicated. The emergence of unique and complex cryptocurrency like gaming and gambling platforms as well as the evolution of non-fungible tokens and hybrids tokens for specific purposes, has changed the asset class.

How our Accountants can help you!

  • How Are Individuals Taxed on Crypto?

    When individuals buy and sell cryptoassets, depending on the frequency and value involved, this is usually seen as an investment activity and any gains made are potentially subject to capital gains tax. There is an annual exemption, but if this is exceeded (including the selling of other assets such as shares or property), tax will need to be paid.

    At MJ Kane, we offer complete individual crypto tax advice and consultation.

  • How Are Businesses Taxed on Crypto?

    If you are carrying on a business that involves cryptocurrency transactions, then the rules are more complex. You may be liable to pay a number of different taxes like Capital gains tax, Income Tax, Corporation Tax, Stamp Duties and even VAT depending on the type of transaction. Note that HMRC may decide to treat you as a business even if you are an individual if your level of activity is comparable to a business. Get more information about crypto tax advice for companies.

  • Why You Should Seek Crypto Tax Advice

    As crypto becomes more popular, HMRC have become more aggressive in their approach to the tax side of cryptocurrency. Depending on how it is used, crypto can be subject to income tax or capital gains tax, with many people now coming under fire as a result of HMRC’s new avoidance legislation.

    Our expert team of accountants and specialist cryptocurrency tax advisers are here to support you with a range of crypto tax services.

  • Crypto Tax Accountants Services

    Our team of professional and highly qualified crypto tax accountants can help manage make this process for you easy and simple.

    At M J Kane, we can provide:

    • One-off specialist advice on your situation
    • Bespoke Reports
    • HMRC registrations for individuals and businesses who trade crypto
    • Production and submission of company/personal tax returns that include crypto-asset profits and gains.

    We offer comprehensive Crypto Tax Consultations to help you manage your crypto tax responsibilities in the UK. Use the form below to book an appointment or alternatively, you can contact us via call.

    Tel: 028 9335 0290

  • What Should I Expect With MJ Kane’s Initial Crypto Tax Consultation

    At M J Kane, we can provide assistance with ensuring that crypto transactions are tax efficient and advising on the implications of crypto asset activities.

  • What is included in my 15-minute advisory phone call

    During your advisory phone call you will be in a position to ask one of our Crypto Tax Specialists any questions you may have regarding tax advice and crypto currency.
    You will be provided with bespoke advice unique to your circumstances.
    The call will include advice on tax planning and tax saving to ensure that you get the best savings out of your investment.
    You will be provided with a report based on the phone call detailing the advice our specialist recommends.
    This call will be more than a consultation and will provide you with bespoke, exact tax advice unique to your situation.
    You can book a 15-minute conversation with one of our Experts now!

  • Do I need to report my Cryptocurrency on my taxes

    Yes, your cryptocurrency is taxable. HMRC considers cryptocurrency holdings to be a taxable income. The rate your currency income is taxed on will vary depending on the way you receive the income.

  • Are paper gains taxable?

    Unrealized gains. Gains that are “on paper” only are called “unrealized gains.” For example, if you bought a virtual asset for £10 and it’s now worth £12, you have an unrealized gain of £2. You won’t pay any taxes until you sell the asset or transfer it.

  • Can HMRC track Crypto?

    HMRC may investigate your tax affairs if you have invested in cryptoassets, cryptocurrency, and virtual currencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Monero (XMR), Zcash (ZEC) and Ripple (XRP).

  • Are There Crypto Tax Reporting Softwares and Tools in the UK

    There are numerous cryptocurrency tax softwares available in the UK and accurately consider UK tax consideration. Koinly Crypto Tax Software is strong consideration for being one of the most user friendly and easy to use crypto reporting tools.

  • Other Crypto Resources You Might Be Interested In

    At MJ Kane, we pride ourselves in the years of industrial expertise within the crypto sphere and UK tax. Delivering award winning services to thousands of businesses and individuals across the globe. Learn more about other crypto tax guides and services.

Why Use MJ Kane As Your Accountants

Award winning services

8000 plus satisfied clients

100+ years combined industry experience

30+ Countries covered

Fixed Fee Service

Tax efficiency focused

Meet the Team

Meet the Senior Management Team

Michael Kane

Founder | Managing Partner

SME Tax Compliance | Tax Planning | Business Development

FCCA Qualified

MJ Kane

Director | Senior Accountant

SME Tax Compliance | Crypto Taxation Compliance | Business Structuring

ACCA Qualified | BSc Hons Accounting

Jonathon Greenaway

Director | Senior Accountant

SME Tax Compliance | Property Capital Gains | Inheritance Tax

ACCA Qualified | BSc Hons Business Studies

Need help with Accountancy? Call us today: 028 9335 0290

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