All Collections
UK Crypto Tax
How are cryptocurrencies treated for inheritance tax purposes in the UK?
How are cryptocurrencies treated for inheritance tax purposes in the UK?

Do you have to pay inheritance tax on cryptocurrencies? Are cryptocurrency gifts potentially exempt transfers?

Daniel Howitt avatar
Written by Daniel Howitt
Updated over a week ago

Disclaimer: This article is intended as an informative piece. This is not accounting or tax advice. Please speak to a qualified tax professional about your specific circumstances before acting upon any of the information in this article.

Cryptoassets are treated as property for Inheritance Tax (IHT) purposes. This means that they will form part of an individual’s Estate on death and IHT may be payable, depending on the overall size of the Estate. Gifts during an individual’s lifetime to another individual are Potentially Exempt Transfers (PETs). 

IHT may be payable if the donor dies within 7 years of making the PET. Gifts into a Trust are Chargeable Lifetime Transfers which may be subject to IHT at the date of transfer. If you are contemplating gifts or transfers at an undervalue of cryptoassets, it is recommended you seek bespoke advice from a qualified tax professional.

It is important to store your cryptocurrencies in a way so that they are accessible by the parties you intend to give them to. Having your bitcoin and other cryptocurrencies in a cold wallet that only you know where the private key for it is means they will be unable to access your cryptocurrencies and they may be lost forever. 

This happened to the founder of QuadrigaCX, a large Canadian cryptocurrency exchange when the founder died whilst travelling in Asia an no one else had access to the exchange wallets holding all of the customer funds.

Need to sort out your crypto taxes? Use
Recap, the privacy focused cryptocurrency accounting software to calculate the taxable gain or loss on your cryptocurrency investments!

Did this answer your question?