Cryptocurrency and digital asset tax services
Specialist tax advice for cryptocurrency and digital assets
Cryptocurrency and digital assets present unique tax, accounting and reporting requirements. Transactions can span multiple wallets, exchanges and blockchain networks, making it difficult to establish a complete picture of your activity.
Our specialist team advises businesses, entrepreneurs, investors and private clients on the UK tax treatment of cryptoassets, helping to establish reliable records, identify tax considerations and develop clear, supportable reporting positions.
We are not promoters of cryptoassets. Our role is exclusively to provide measured, professional advice on tax obligations, reporting and risk. Our team has specialist cryptoasset training backed by practical tax and reporting experience. We focus on:
You can establish a complete picture
Cryptoasset activity can span wallets, exchanges and blockchain protocols. We bring that information together so you can understand what you hold, what transactions have taken place and what needs to be considered for tax and reporting purposes.
"Specialist knowledge for complex digital asset activity."
→ Identifying tax exposures
We advise on the UK tax treatment of a wide range of cryptoasset activity, including:
- Capital gains tax on disposals of cryptoassets (including sales, swaps, gifts and spending crypto)
- Income tax on crypto received as:
- Employment or consultancy income
- Staking, mining and validation rewards
- Airdrops and incentive tokens
- Decentralised finance (DeFi) and governance token rewards
- Application of HMRC’s pooling, matching and valuation rules
- Use of sterling (GBP) valuations at the correct transaction date and time
- VAT considerations where goods or services are paid for in crypto
We make sure crypto activity is correctly classified and reported, avoiding common errors such as assuming tax only arises when assets are converted to fiat currency.
→ DeFi, staking and advanced crypto activity
DeFi and staking activities often create multiple taxable events that are easily overlooked. We can assist clients involved in:
- Staking and liquid staking arrangements
- Yield farming and liquidity provision
- Governance token rewards
- Lending and borrowing through DeFi protocols
- Derivatives and leveraged trading
- Cross‑chain bridges, wrapped tokens and Layer 2 networks
These activities frequently lack traditional transaction statements. We help identify taxable events, apply appropriate valuations and report income and gains accurately.
→ Non-fungible tokens (NFTs) and digital collectibles
We advise creators, investors and businesses on the tax treatment of NFTs and other non‑fungible tokens, including:
- Income vs capital treatment for NFT creators and traders
- Capital gains tax for NFT investors
- Valuation challenges in low‑liquidity or volatile markets
- Record‑keeping requirements for NFT transactions
- Treatment of NFTs received through gaming, staking or airdrops
We focus on well-documented valuation methods and clear audit trails to support HMRC reporting.
Record reconstruction and transaction tracing
Crypto records are often incomplete due to lost exchange data, wallet‑based activity or platform failures. We assist with:
- Reconstructing transaction histories using blockchain explorers and specialist tools
- Reconciling exchange data with on‑chain wallet activity
- Identifying missing disposals, rewards or wallets
- Supporting clients where records have been lost due to exchange collapses or technical issues
Where appropriate, we prepare supporting documentation for HMRC enquiries or disclosures.
→ Compliance, risk and HMRC enquiries
We advise clients on regulatory and compliance risk, including:
- Reviewing crypto activity ahead of HMRC enquiries
- Advising on HMRC information powers and matching initiatives
- Supporting responses to HMRC nudge letters and compliance checks
- Advising on negligible value claims, thefts or losses (where evidence supports the claim)
- Identifying red flags that may require further investigation or disclosure
Our approach is careful and evidence‑led, recognising the increasing visibility HMRC has over cryptoasset activity.
→ Ongoing support and client education
We also work with clients to improve processes and reduce future risk, including:
- Advising on best-practice record‑keeping for wallets and exchanges
- Reviewing crypto tax software outputs and correcting errors
- Helping businesses that accept crypto payments understand VAT, income recognition and accounting treatment
- Educating clients on common misconceptions and HMRC expectations
Find the right specialist for your situation
What would you like to know?
→ How is cryptocurrency taxed in the UK?
The tax treatment depends on how you acquire, hold and use your cryptoassets. Selling, swapping or spending crypto can give rise to Capital Gains Tax, while some cryptoasset income may be subject to Income Tax. We consider the nature of your activity and circumstances before determining the appropriate treatment.
→ Do I pay tax when I swap one cryptocurrency for another?
A swap between cryptoassets can be treated as a disposal for Capital Gains Tax purposes. This means tax may arise even where you have not converted the asset into pounds or another traditional currency. We can review your transactions and help establish the relevant tax position.
→ How are staking and DeFi rewards taxed?
The tax treatment of staking and DeFi activity depends on the nature of the activity and how the returns are received. Income Tax or Capital Gains Tax may be relevant depending on the circumstances. We review the underlying arrangements and transactions before determining the appropriate treatment.
→ Can mgr help reconstruct my cryptocurrency records?
Yes. Where records are incomplete or spread across different wallets and exchanges, we can use exchange records, blockchain data and specialist tools to help reconstruct transaction histories. We can then use the available evidence to support tax calculations, reporting or historic corrections.
→ Can mgr help with an HMRC cryptocurrency enquiry?
Yes. We can support clients responding to HMRC information requests, nudge letters, compliance checks and tax enquiries involving cryptoassets. We can also review historic positions and advise on voluntary disclosures or corrections where appropriate.
You can bring in the expertise you need
Cryptocurrency and digital assets can raise questions across personal tax, business tax, accounting and wider commercial matters.
With mgr, you have one relationship and access to the expertise behind it. Where your circumstances require additional input, we can bring the relevant specialists into the conversation.
Want to talk about your cryptocurrency tax position?
If you or your business are involved in cryptocurrency, NFTs or decentralised finance and would like to discuss your tax position, reporting obligations or an HMRC enquiry, Joel and our specialist team can help.
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