Calculate UK inheritance tax on cryptocurrency estates including Bitcoin, Ethereum, and other cryptoassets.
IHT on Crypto Estate
Frequently Asked Questions
Yes. HMRC treats cryptocurrency as property for IHT purposes. All crypto held at death is included in the estate and taxed at 40% above the nil rate band threshold.
Crypto is valued at the market price on the date of death (or an alternative valuation date if elected). The GBP equivalent using that day's exchange rate is used.
There is no separate nil rate band for crypto. All estate assets (including crypto) are included in the single nil rate band of £325,000 (plus up to £175,000 residence nil rate band).
Gifts of crypto follow the normal 7-year rule. If you die within 7 years of giving crypto away, taper relief applies. Gifts to spouses/civil partners are exempt.
Executors must value and liquidate or transfer crypto. They need access to private keys/wallets. Without proper estate planning, crypto may be permanently inaccessible.
The estate must provide HMRC with the total GBP value at death, transaction history, and evidence of ownership. Hardware wallets, exchange accounts, and private keys must be documented.
Yes. Transfers between spouses and civil partners are exempt from IHT regardless of amount, and this applies equally to crypto assets.
Crypto in a discretionary trust is subject to IHT every 10 years (periodic charge) at up to 6% of the value above the nil rate band.
Yes. NFTs are included in the estate at market value for IHT purposes, just like other crypto assets.
HMRC does not currently accept crypto directly as IHT payment. Executors typically liquidate crypto to pay IHT in GBP.
Options include: early gifting (7-year rule), placing in trust, spouse exemption, or using IHT-exempt investments. Professional IHT and crypto estate planning advice is recommended.
If crypto cannot be accessed (lost keys), HMRC may accept a nil or reduced valuation with appropriate evidence. Legal and tax advice should be sought for inaccessible assets.