In short
HMRC treats crypto as part of the estate like any other asset. Inheritance tax is 40% above the nil-rate band of £325,000, frozen until April 2031. There’s no capital gains tax on death, and heirs take the crypto at its value on the date of death. Once probate is granted in England and Wales, the will becomes public.
Crypto is part of the estate
HMRC’s guidance says that “cryptoassets are treated as assets of a person’s estate in much the same way as other assets, such as bank accounts, property, shares, and investments” (HMRC Cryptoassets Manual, CRYPTO25000). The same page lists ways personal representatives can find holdings, and says that if the estate knows about crypto but can’t access it, it should explain this and give an estimated value on the inheritance tax account (form IHT400).
The law itself caught up in December 2025. The Property (Digital Assets etc) Act 2025 confirms that a digital thing such as crypto can be personal property even though it’s neither a physical object nor a legal claim against someone (legislation.gov.uk). It applies in England and Wales and Northern Ireland.
Inheritance tax
- The standard rate is 40% on the part of the estate above the nil-rate band of £325,000.
- A residence nil-rate band of up to £175,000 can be added when a home goes to children or grandchildren. It’s reduced for estates over £2 million.
- Both bands are frozen at these levels until April 2031 (House of Commons Library).
- What passes to a spouse or civil partner is usually exempt, and unused nil-rate band can transfer to the surviving partner. See GOV.UK.
Crypto counts towards the estate at its value on the date of death. Record that value, with the source, for each holding.
Capital gains tax
There’s no capital gains tax on death. The personal representatives or heirs are treated as acquiring the assets at their market value on the date of death (Taxation of Chargeable Gains Act 1992, section 62). If an heir sells later, only the gain after that date is taxable.
Probate and privacy
To deal with most estates, the executor applies for a grant of probate (or letters of administration if there’s no will). Exchanges and banks ask for it, though, as GOV.UK puts it, “every organisation has its own rules” (GOV.UK). Scotland uses a different process, called confirmation.
Once a grant of probate has been issued in England and Wales, anyone can order a copy of the will (GOV.UK). That’s why seed phrases and PINs never go in a will. See What to put in your will.
Crypto platforms now report to HMRC
Since 1 January 2026, crypto service providers have had to collect customer details under the international Cryptoasset Reporting Framework (HMRC). The first annual reports are due by 31 May 2027 (the regulations). This doesn’t give heirs a list of accounts, but it does mean undeclared holdings are increasingly visible to HMRC.
Checklist for personal representatives
- List every exchange account and wallet, using Finding crypto.
- Value each holding on the date of death, and keep the source.
- Include crypto on the inheritance tax account, with an explanation for anything you know of but can’t access.
- Apply for probate and send claims to exchanges with the grant.
- Give each heir a note of their acquisition value for later capital gains.
Not tax or legal advice. Figures are for the 2026/27 tax year; check GOV.UK for updates.