Crypto & Digital Assets Accounting: What to Look For
HMRC treats cryptocurrency as property for tax purposes, creating capital gains tax obligations on every disposal — including crypto-to-crypto trades, DeFi interactions, staking rewards, airdrops, and NFT transactions. The volume of taxable events can be enormous, and most generic accountants are not equipped to handle the complexity. A crypto-specialist accountant uses blockchain tracking tools to reconstruct transaction histories, applies the correct cost basis methodology (HMRC requires Section 104 pool averaging, not FIFO), identifies allowable losses, handles income tax on mining and staking rewards, and ensures your return withstands HMRC scrutiny as the tax authority increases its focus on digital assets.
General guidance reviewed 12 July 2026 · How we review content
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Crypto & Digital Assets FAQs
How is cryptocurrency taxed in the UK?
Buying crypto is not normally a taxable disposal, but selling, exchanging, spending, or gifting tokens can be. For 2026/27 the main individual CGT rates are 18% and 24%. Mining, staking, airdrops, employment receipts, and trading activity can have different Income Tax treatment.
How do I calculate my crypto cost basis?
HMRC requires the Section 104 pooled average cost method. Each token type has its own pool. When you acquire tokens, their cost is added to the pool; when you dispose, the average cost is used. The 30-day bed-and-breakfasting rule also applies — if you reacquire the same token within 30 days of selling, the cost basis uses the reacquisition price instead.
Can I offset crypto losses against gains?
Yes. Capital losses from cryptocurrency can be offset against gains from crypto or other assets in the same tax year. Unused losses can be carried forward indefinitely. However, you must report the losses to HMRC within four years of the end of the tax year in which they occur.
Choosing an accountant for crypto & digital assets needs?
Use the checks in this guide, browse public-record listings, and confirm relevant experience directly before appointing a firm.