Sign up for our FREE monthly newsletter

Don't miss out on amazing content

Part of our vision is to share our expert insight and knowledge to help business owners achieve success. Sign up today!

Client PortalXERO LoginClient Services Brochure
Download our Client Services Brochure

The Chain of Crypto Taxes

POSTED BY: Scott Sartin

18 November 21

The opportunity to make life-changing amounts of money in crypto is there for everyone. Even if you make small amounts of money, you may still want to make a donation to charity. Whatever the level of your donation, so long as there is no bounty in you doing so i.e. you receive no kick-back from the charity or no other forms of benefit, the charitable donation is not subject to capital gains tax when you dispose of the crypto.

At the time writing, there is no mechanism for a UK tax payer to be able to claim gift aid on donations of crypto. As crypto does not (yet) constitute legal tender throughout the modern world (except for in El Salvador and the City of Miami with their ‘MiamiCoin’), it is not recognised as money, and so for a charity to receive Gift Aid on a gift of crypto, it would first need to be converted to cash and the cash then gifted to the charity.

If you trade your crypto through a limited company, such as a family investment company, any gifts of crypto to charity will be a tax deductible expense.


Crypto versus Money

The long game in the world of crypto

The Chain of Crypto Taxes

​Article 13 - Will my estate pay inheritance tax on my crypto holdings?

The Chain of Crypto Taxes

Article 12 - Using crypto to pay for goods and services