Cryptocurrency Tax


As cryptocurrency has become increasingly popular in recent years, the treatment of cryptocurrency tax has also become more important, particularly with HMRC now paying close attention.

If you are involved in any aspect of cryptocurrency trading, then you may want to consider seeking advice from an accountant.

At Kingston Burrowes, our knowledgeable yet down to earth team will explain in simple terms the reporting obligations you will need to make to ensure you remain compliant.

We will not only deal with your HMRC tax reporting requirements, but we can provide tax efficient planning of your crypto assets.

Our cryptocurrency tax compliance services include:

  • Advice on the tax treatment of cryptoassets, including the purchase and disposal of cryptoassets, and income received via mining/staking
  • Specific crypto tax advice for non-UK domiciled individuals
  • Completion of accurate and timely tax returns in relation to your crypto income or gains
  • Preparation of voluntary disclosures to correct historical crypto tax errors
  • Data preparation to illustrate the value of your cryptoassets for tax purposes


There is no specific crypto tax in the UK, and instead it is subject to either Capital Gains Tax (CGT) or Income Tax.

The tax you will pay is dependent on the specific transactions you make but ultimately if you are seen to be making an income, then you will pay income tax, and if you are seen to be making a capital gain, you’ll pay CGT.

As a relatively new area, cryptocurrency legislation is developing quickly, and it’s important to remain on top of the changing rules to avoid any unwanted penalties or investigations from HMRC.

At Kingston Burrowes, our experienced team can ensure that your crypto transactions remain compliant with HMRC legislation and that your crypto assets are structured in the most tax efficient way.

We can also offer support to resolve ongoing HMRC investigations and to help prevent future investigations.


    As with all taxable income or gains, it is vital that you keep a record of the transactions you make when buying, selling, or investing in crypto.

    You may have multiple transactions spread across various wallets and it’s important that you track your crypto activity to ensure that your capital gains/losses as well as crypto income and expenses can be correctly calculated on the necessary tax returns.

    We recommend that all our crypto clients use a crypto tax app such as Koinly to manage their transaction details.

    The Koinly app records all your transactions regardless of how many wallets you have, and ensures that you have all the essential information to hand for your tax returns.

    At Kingston Burrowes we offer a substantial discount from the listed prices on Koinly accounts, and by granting us access to your account, we can crunch the numbers and complete your returns on your behalf, saving you valuable time.

      CRYPTOcurrency tax planning

      In addition to the services we offer to ensure your cryptocurrency assets and transactions remain tax compliant, we can explore and advise you on the most efficient tax structure for your cryptoassets.

      As with most trading and investment activities, it is more beneficial in the long term to consider the tax treatment of transactions before you complete them.

      Tax planning requires an understanding of your personal position, your goals and your ambitions for the future, and we will spend time exploring these elements together.

      With a sound understanding of your current portfolio and your objectives, we can help you to make informed decisions, and to formulate a clear and effective strategy to maximise your tax efficiency.

        why have hmrc contacted me?

        It’s been reported in recent months, that HMRC have begun sending ‘nudge letters’ to prompt taxpayers who may need to consider their cryptocurrency tax affairs.

        These letters do not necessarily indicate that HMRC has specific information relating to incorrect tax returns or unpaid tax. However, they do have access to data on UK crypto holders from the crypto exchanges and they are utilising this to send these prompts.

        If you have received a letter from HMRC suggesting that you review your cryptocurrency tax affairs and you are uncertain of whether you need to file a related tax return, please get in touch with the Kingston Burrowes team who will be happy to discuss your situation and ensure that you are meeting your tax obligations.

          Related services

          Tax planning

          No one wants to pay more tax than is necessary and at Kingston Burrowes, reducing your tax liability is one of our top priorities.

          Read more

          Exit strategies

          Business exit, pension provision, life and assurance and more. However you hope to spend your retirement, considerable forward planning is required.

          Read more

          Estate planning

          Where will your estate go when you are no longer around? Careful estate planning is essential to ensure your family and friends receive the benefits you want them to.

          Read more

          Trusts & executorships

          Tax-efficient and simple solutions to put assets aside for future beneficiaries. Take advantage of our experience, to advise you on this specialist area.

          Read more

          Tax investigations

          Take the stress out of a tax investigation with expert help from our team. Tax Fee Protection also available.

          Read more

          Capital gains tax (cgt) reporting

          Support to process your 30 day CGT disposal payment as required by HMRC.

          Read more


          Tell us your story

          If you'd like to know more about how Kingston Burrowes can help manage your business or personal accounts, talk to one of our friendly team today.