We explain tax on cryptocurrency in plain English, handle it correctly, and make sure you claim every relief you are entitled to, all at a fixed fee.
Tax on Cryptocurrency
Buying, selling, staking and earning cryptocurrency all have tax consequences, usually Capital Gains Tax on disposals and Income Tax on things like staking, mining and airdrops, and HMRC now receives data from exchanges, so getting your crypto tax right matters.
We work out the tax on your crypto activity, calculate gains and income using HMRC's rules, apply your allowances and losses, and report it correctly, so you are compliant and pay no more than you have to on your crypto.
HMRC treats most crypto disposals as subject to Capital Gains Tax, with complex pooling and same-day rules, while staking, mining and airdrops can be taxable income, so accurate calculation and reporting is essential now that exchanges share data.
The Detail That Matters
HMRC treats most cryptoassets as property, so selling, swapping or spending crypto is a Capital Gains Tax event, while earning it through staking, mining or airdrops is usually income. The pooling rules are fiddly, and with exchanges now reporting to HMRC, accuracy matters more than ever.
It is not just cashing out to sterling that counts: swapping one token for another, spending crypto on goods, or gifting it (other than to a spouse) all trigger a disposal at market value. Gains above the £3,000 annual exemption are taxed at 18% or 24% depending on your income band.
Each token type sits in a section 104 pool with an averaged cost. Special rules apply if you buy back the same token on the same day or within 30 days, which stops simple bed-and-breakfasting. Reconstructing pools across years of trades and multiple wallets is where most people, and a lot of software, go wrong.
Rewards from staking or mining, and many airdrops, are taxable as income at their sterling value when received, then form the base cost for a later CGT disposal. Getting the two-step treatment right avoids both under-declaring the income and over-paying CGT later.
Under the Crypto-Asset Reporting Framework and existing exchange data-sharing, HMRC increasingly knows about holdings that were never declared. Voluntary disclosure through the correct facility is far cheaper than waiting for an enquiry, and we handle that process on the best terms.
The biggest error is treating only fiat withdrawals as taxable and ignoring crypto-to-crypto swaps, which are disposals in their own right, often building up years of unreported gains without any cash ever reaching a bank account.
Key Figures
How We Help
We calculate your crypto Capital Gains Tax using HMRC's pooling and matching rules, applying your annual exemption and any losses.
We handle the Income Tax on staking, mining, airdrops and rewards, so all your crypto activity is reported correctly.
With exchanges now sharing data, undeclared crypto is increasingly detected. We make sure your position is properly reported and up to date.
All the forms, calculations and correspondence handled on your behalf, so you never have to decode HMRC's rules or sit on hold.
A clear fixed fee quoted after a free call, your position explained in plain English, and never a surprise bill.
We act quickly, and where earlier years are involved we put those right too, reclaiming refunds or minimising penalties.
Crypto tax is complex, pooling rules, multiple transaction types, and HMRC is now actively pursuing undeclared crypto using exchange data. We calculate it correctly and bring your affairs up to date so you are compliant.
Recent Client Outcome
A client had traded across three exchanges over four years and staked one token, assuming nothing was due because they had barely withdrawn to their bank.
What we did. We reconstructed their full transaction history, built section 104 pools for each token, and separated the £5,400 of staking rewards (taxed as income at the value on receipt) from the capital disposals on swaps and sales.
The outcome. The net taxable gain after the £3,000 exemption and available losses was far smaller than they feared, and we corrected two earlier years through voluntary disclosure before HMRC's data prompted an enquiry, keeping penalties to the lowest band.
They ended up fully compliant, taxed correctly on both the income and the gains, and protected from the far higher penalties that follow an HMRC-initiated investigation.
Why People Come to Us
Questions Answered
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Or email info@yourtaxhelp.co.uk, we typically respond within two business hours.
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