Cryptoasset activity can create tax consequences even when no money has been withdrawn to a bank account. Selling tokens, exchanging one token for another, using cryptoassets to make purchases, receiving staking rewards or other income, and moving assets across exchanges and wallets can make the records difficult to follow. Our review service helps organise the information and identify what needs to be reported.
ApC’s cryptoasset tax service is led by Leighton Sharp, supported by members of our wider tax and accounts team.
HOW THIS HELPS YOU
Bring records together
We help bring together complete exchange exports and wallet or blockchain transaction histories into a workable transaction record. |
Identify taxable events
Review sales, exchanges, spending, gifts, receipts and transfers between wallets to distinguish taxable events from movements of assets you continue to own. |
Calculate gains and losses
Transactions are reviewed using the UK pooling and matching rules, subject to the quality of available data. |
Complete tax reporting
Relevant gains, losses and income can be incorporated into the appropriate tax return disclosures. |
Review earlier years
We can identify potential historic omissions and advise on the next steps, including disclosure where necessary. |
Improve future records
A practical record-keeping process can reduce the cost and uncertainty of future tax calculations. |
THE ApC DIFFERENCE
ApC considers cryptoassets as part of the client's wider tax affairs rather than as a standalone calculation. We can review other capital gains, losses, income levels and reporting obligations and explain where further specialist evidence or software work may be required. The scope and fee will depend heavily on the number of platforms, transactions and missing records.
OUR SERVICE CAN INCLUDE
- Initial scoping and review of available records
- Transaction classification and reconciliation support
- Capital gains and income tax calculations
- Tax return reporting and loss claims where appropriate
- Historic position review and voluntary disclosure support where agreed
Speak to ApC before filing your tax return if you have bought, sold, exchanged or received cryptoassets.
ApC provides tax and accounting services only. We do not advise on whether to buy, sell or hold cryptoassets and do not provide investment, custody, wallet security or other regulated financial services.