Crypto holdings set out clearly for your tax return

Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.

On this page

• How is crypto taxed in the UK in 2026 to 2027?
• Which firm makes an annual overview of my crypto for my tax return?
• What is a statement of balances on a given date?
• HMRC has written to me about my crypto, what do I send?
• How do I set out my company’s crypto holdings clearly?
• What changes with the Cryptoasset Reporting Framework from 2026?
• What makes an overview of crypto holdings checkable?
• Frequently asked questions
• What can you do now?

How is crypto taxed in the UK in 2026 to 2027?

For most individuals, selling, swapping or spending crypto is a disposal for Capital Gains Tax. You pay tax on the gain, worked out in pounds sterling, above your annual tax-free allowance. The tax year runs from 6 April to 5 April, and HMRC expects a record of every transaction.

Capital Gains Tax, 2026 to 2027	Amount or rate
Tax year	6 April 2026 to 5 April 2027
Annual tax-free allowance (individuals)	£3,000
Rate on gains within the basic rate band	18%
Rate on gains above the basic rate band (higher and additional rate)	24%
Basic rate band	£37,700

Sources: GOV.UK, Capital Gains Tax rates, GOV.UK, Capital Gains Tax allowances and HMRC, check if you need to pay tax when you sell cryptoassets. Paucitas does not give tax advice; for the return itself, speak to your accountant or tax adviser.

Worked example: how a gain on crypto is taxed in 2026 to 2027

An example following the method on GOV.UK, for a higher rate taxpayer with no other gains in the 2026 to 2027 tax year and no fees to deduct. Over several years this person bought 1,000 tokens of one type for £6,000 in total, so the pooled cost is £6 per token. In the 2026 to 2027 tax year they sell 500 tokens for £14,000.

1. Allowable cost: 500 tokens × £6 = £3,000
2. Gain: £14,000 minus £3,000 = £11,000
3. Taxable gain: £11,000 minus the £3,000 tax-free allowance = £8,000
4. Tax: 24% × £8,000 = £1,920

For a basic rate taxpayer, the part of the gain that fits within the remaining basic rate band is taxed at 18% and the rest at 24%. Special rules apply to tokens bought on the same day as the sale or within the following 30 days, and fees can be deducted; your adviser takes those into account.

This example illustrates the method and is not tax advice. Source: GOV.UK, Capital Gains Tax rates. You or your accountant complete the return.

Why your transaction history matters

To work out a gain, you need the cost of every token you sell, and that depends on all your earlier purchases of that token. Anyone who wants to back that up has to be able to show what happened to the crypto over the years: purchases, sales, swaps, transfers between wallets and the value at each moment. Paucitas reconstructs that transaction history on the blockchain and links it to your statements, even if an exchange no longer exists. That gives your adviser an overview that can be checked step by step.

What if you no longer have the full history?

If statements are missing, an exchange no longer exists or there are wallets whose history you have lost, the route can often still be found on the blockchain. Paucitas maps out which balances were at which addresses and how they got there. If HMRC asks questions, an overview like that gives you something solid to work from.

Which firm makes an annual overview of my crypto for my tax return?

Paucitas puts together an annual overview: per tax year the balances, addresses and values, with the transactions that make the year traceable. You or your accountant use that overview for Self Assessment. Paucitas provides the facts and the report; the tax judgement stays with you or your adviser.

What an annual overview contains

• per wallet and per platform the opening balance, the movements and the closing balance;
• for every line a location: an address, an account with a platform or a transaction hash;
• for every value a price with date and source, in pounds sterling;
• a separate note on staking, airdrops and transfers between your own wallets;
• a reconciliation between the sources, so nothing is counted twice or left out.

Paucitas does all tracing itself, without tracing tools, and checks every transfer between wallets separately. That way every line can be traced back to a record nobody has to take on trust.

Further reading: the blog how to back up the origin of crypto for the tax authorities.

What is a statement of balances on a given date?

A statement of balances records which crypto you held on a particular date, at which addresses and at what value. In the UK that date matters, for example, at the end of a tax year, on a death for Inheritance Tax, or when HMRC asks about a specific moment. Paucitas reconstructs it on the blockchain and combines it with your exchange data, so the overview can be checked.

Further reading: the blog why you should not wait for your next tax return to map out your crypto.

HMRC has written to me about my crypto, what do I send?

When HMRC asks about crypto, it wants to see where your tokens came from, what you disposed of and how you worked out your gains or losses. Paucitas maps out the origin and the balances and records them in a report HMRC can check. You or your tax adviser reply to HMRC with that report as evidence.

An example from practice

A composite example with details changed: a woman received questions about crypto she had held since 2017, spread across three platforms, one of which no longer existed. Paucitas reconstructed the deposits and transfers on the blockchain, linked them to her bank statements and set out the disposals and pooled costs per tax year. Her adviser replied to HMRC with that report attached.

HMRC can formally ask for information and documents under Schedule 36 to the Finance Act 2008, where they are reasonably required to check your tax position.

Further reading: the blog the verification questions that keep coming back with crypto and tax.

How do I set out my company’s crypto holdings clearly?

For a limited company or its director, we separate personal holdings from company holdings and map out the balances at each balance sheet date. That fits in with the accounts and the tax returns. Paucitas provides the overview and the evidence; how it is treated and the advice are for your accountant.

Further reading: the blog verifying crypto on the balance sheet for business owners.

What changes with the Cryptoasset Reporting Framework from 2026?

From 1 January 2026, UK cryptoasset service providers under the Cryptoasset Reporting Framework (CARF) have to check their customers and report their details and a summary of their transactions to HMRC every year. Your tax return and the data shared with HMRC then need to match. A traceable annual overview and a statement of balances help show that they do.

See also: HMRC’s guidance on reporting cryptoasset user and transaction data and our glossary entry DAC8 and CARF.

What makes an overview of crypto holdings checkable?

Crypto holdings become checkable as soon as every figure has a location. A number of tokens belongs to an address or an account with a platform, a value belongs to a price with a date and source, and a movement belongs to a transaction with a hash. Keep those three layers together and you can later trace every line back to a record nobody has to take on trust.

Where it goes wrong in practice

In practice it goes wrong in two places. The first is the date: an overview made on a random day does not match the tax year or the moment HMRC is asking about. The second is the spread across platforms and wallets, which leads to things being counted twice or left out. A complete overview therefore shows, per source, an opening balance, the movements and a closing balance that agree with each other.

Frequently asked questions

How do I set out my crypto clearly for HMRC?

Record every purchase, sale, swap and transfer with the date, the number of tokens and the value in pounds, with a source for every line. Anything that does not follow from an export, such as staking, airdrops or transfers between your own wallets, goes in separately with a note. That gives an overview someone can check line by line.

Who makes an overview of my crypto for my accountant?

An independent investigations firm makes that overview when your records are incomplete or spread over several years and platforms. Paucitas brings the sources together into one timeline with the balances on the dates that matter. The tax judgement stays with your accountant.

Does Paucitas give tax advice?

No. Paucitas provides the facts and the report on your crypto holdings. The return and the tax judgement are for you or your tax adviser.

Can Paucitas help if an exchange no longer exists?

Often, yes. The transactions are on the blockchain, even if the platform has gone. Paucitas reconstructs the route and links it to your bank statements and other records.

How long does it take and what does it cost?

From the same day to around two weeks, depending on the number of years, wallets and platforms. The intake is free; after that you receive a bespoke quote in advance.

What can you do now?

Untidy crypto records worry a lot of people, especially when there is a letter from HMRC on the table. Do get in touch; we look together at what is needed and tell you honestly what is achievable.

Ring us any time, day or night, on +31 20 244 5774, fill in the contact form (you will hear from us within 1 to 3 hours) or email us (reply within 24 hours, usually the same day). The intake is free and without obligation, and you receive a bespoke quote in advance.

Which pages belong to this topic?

• Proving the origin of assets, the wider topic this is part of.
• Box 3 and crypto, how the Dutch system differs from UK Capital Gains Tax.
• A crypto tax file: the documents you really need
• HMRC is asking about my crypto, who helps me back it up?
• Who helps prove the origin of crypto?