Cryptocurrency

Cryptocurrency is becoming an increasingly popular way to transact and invest.

As a result the values of some cryptocurrencies, such as Bitcoin and Ethereum, have risen significantly over the last five years. Many people have become millionaires purely as a result of a relatively modest outlay in a cryptocurrency several years ago.

However, not many people understand these currencies and even fewer understand the tax implications. For instance, which profits and gains are taxable? Does it matter that I am mining? What happens if the blockchain forks? Can I roll my gain from one cryptocurrency into another?

If you’re a cryptocurrency user who has made large gains, you may decide to transfer the monies back into a ‘fiat currency’ at some time. At that point they will become visible to HMRC.

With so much misinformation about the taxability of virtual currencies online, it is highly risky to believe everything you read, and safer to seek specialist guidance.

BKL’s tax specialists are able to advise clearly and accurately on the tax implications of buying and selling cryptocurrencies, mining cryptocurrencies, arbitraging exchanges and margin trading as well as transferring back into ‘fiat currencies’ and ensure that all disclosures are made precisely and promptly to HMRC. This will provide peace of mind and the assurance that you are complying fully with the law.

In appreciation of the role of cryptocurrency, in 2019 we became the first mid-sized accounting firm in the UK to accept fee payments in Bitcoin.

We’re proud to be a member of CryptoUK, the self-regulatory trade association for the UK cryptoasset industry.

For more information or help from one of our tax specialists, please contact us using our enquiry form.

Find out more about our expertise in cryptocurrency accounting & tax, including videos, on this page.

NICOLA HALL

BILSHAN MENSAH

Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.

ELANA DIMMER

Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.

ENQUIRY FORM

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