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Crypto accounting & tax in United Kingdom

Reporting framework, corporate tax and individual tax treatment for digital assets in United Kingdom, from CryptaCount's jurisdiction database covering 72 countries.

United Kingdom: tax & reporting data

General Information

Default Framework
IFRS
Permitted Frameworks
IFRS, FRS_102
IFRS Mandatory For
AIM/listed entities use IFRS. Others use FRS 102.
Tax Year
UK APR APR (end M4)
Functional Currency
GBP
FX Source (Reporting)
BOE
FX Source (Tax)
HMRC
Transaction Rate
Daily Spot
Hyperinflationary
✗ No

Reporting — FRS_102

Framework Available
✓ Yes
Crypto Classification
Intangible Asset, Investment
Classification Notes
IAS 38 intangible (most common); IAS 2 inventory if held for sale in ordinary course. No dedicated IFRS crypto standard.
Measurement Basis
Historical Cost Fair Value
Permitted Cost Methods
FIFO, WAVG
Prohibited Cost Methods
LIFO
Impairment Required
✓ Yes
Impairment Type
FRS 102 Section 27
Reversal Allowed
✓ Yes
NRV Write-down
✗ Not required
Fair Value Hierarchy
Recent Standards
No dedicated IFRS crypto standard. IFRIC agenda decision (2019) confirmed IAS 38/IAS 2. IASB crypto project in pipeline, no ED yet.

Corporate Tax — Rate & Classification

Corporate Tax Rate
25%
Crypto Classification
Capital Gains
Notes
HMRC: crypto = chargeable asset for CGT. Corporation tax on chargeable gains at main rate.

Corporate Tax — Cost Basis

Measurement Basis
Historical Cost
Default Cost Method
SHARE POOLING
Permitted Methods
Share Pooling
Taxpayer Can Elect
✗ No
Country Override
Share Pooling (UK)
Override Notes
HMRC mandates share pooling (Section 104 pool) for crypto. Not FIFO.
LIFO Conformity Req.
✗ No
Differs from Reporting
✓ Yes

Corporate Tax — Anti-Avoidance

Wash Sale
✓ Bed and Breakfast
Window (before/after)
0d / 30d
Same-Day Rule
✓ Yes
Loss Restriction
Capital only
Loss Carryforward
Unlimited

Corporate Tax — Holding Period

Holding Period Benefit
✗ No
Period
Benefit Type

Corporate Tax — Crypto Event Treatment

Staking Rewards
FMV at Receipt
Gas Fee Treatment
Add to Cost
Gas = Disposal of Native
✓ Yes
Crypto↔Crypto Taxable
✓ Yes
DeFi Wrapping
Unclear
Fork Cost Basis
Zero

Individual Tax — Regime

Tax Regime
Capital Gains
Regime Notes
CGT with share pooling. Same-day rule, then 30-day B&B rule, then S104 pool. Annual exemption reduced.
Tax Rate
24%
Rate Notes
18% basic rate / 24% higher rate (from Oct 2024). Was 10%/20% before.

Individual Tax — Cost Basis

Measurement Basis
Historical Cost
Cost Method
SHARE POOLING
Method Electable
✗ No
Permitted Methods
Share Pooling
Country Override
Share Pooling (UK)

Individual Tax — Exemptions

CGT Exempt
✗ No
Exempt Conditions
Holding Period
HP Benefit
Annual Exemption
GBP 3,000
Threshold Exemption

Individual Tax — Anti-Avoidance

Wash Sale
✓ Bed and Breakfast
Same-Day Rule
✓ Yes
Superficial Loss
✗ No
Loss Restriction
Capital only
Loss Carryforward
Unlimited

B2C vs B2B Differences

Differs from B2B
✓ Yes
Notes
Tax: share pooling + B&B rules. FS: accounting standards.
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