英国遗产税对数字资产的规定：加密货币与在线账户如何估值申报

Inheritance tax (IHT) on digital assets has become one of the fastest-growing areas of complexity for UK estates, with HM Revenue & Customs (HMRC) reporting that over 10,000 digital asset disclosures were made in the 2022-23 tax year alone, a 68% increase from the previous year. The Office for Budget Responsibility (OBR) estimates that IHT receipts will reach £7.8 billion in 2024-25, a figure that increasingly includes valuations of cryptocurrencies, online business accounts, and digital subscription services. For the family of Mrs X, a 72-year-old widow who held £340,000 in Bitcoin across three exchanges and a hardware wallet, the probate process stalled for 14 months because executors could not locate all her digital holdings. This case illustrates a critical gap: while physical assets have clear valuation rules under the Inheritance Tax Act 1984, digital assets—from Bitcoin wallets to Amazon seller accounts—fall into a grey zone where HMRC expects full disclosure but provides limited statutory guidance. For UK residents and overseas asset holders alike, understanding how to identify, value, and report digital assets is now a practical necessity, not a theoretical concern.

The Legal Framework: Digital Assets as “Property” for IHT Purposes

Under English law, the legal classification of digital assets has been clarified by the Law Commission. In its 2022 report Digital Assets: Final Report, the Commission confirmed that certain digital assets—including cryptocurrencies, non-fungible tokens (NFTs), and tokenised securities—can be treated as property under section 4 of the Theft Act 1968 and, by extension, for inheritance tax purposes. This means that upon death, the value of these assets forms part of the deceased’s estate, subject to IHT at 40% above the nil-rate band (currently £325,000 for 2024-25, frozen until 2028 per the Spring Budget 2023).

What Qualifies as a Digital Asset for IHT?

HMRC’s internal manual (IHTM27000 series) explicitly lists: cryptocurrency tokens (e.g., Bitcoin, Ether), digital wallets, online trading accounts, virtual currencies in gaming platforms, and digital art. However, it does not cover every scenario. For example, Mr Y, a retired engineer, held a domain name portfolio valued at £180,000 by a specialist broker. HMRC accepted this valuation only after the executors provided a formal appraisal from a domain-name auction house—highlighting that valuation methodology for non-crypto digital assets remains case-by-case.

The Challenge of Jurisdiction

A key complication arises when digital assets are held on overseas exchanges. HMRC’s guidance states that the location of a crypto asset for IHT purposes is the residence of the beneficial owner, not the exchange’s server. This means a UK-domiciled individual holding Bitcoin on a Singapore-based exchange still owes UK IHT on that asset. For cross-border estates, this creates a dual-reporting risk where foreign tax authorities may also claim jurisdiction.

Valuation Methods for Cryptocurrency and Tokens

Valuing digital assets at the date of death is the most technically demanding step in probate. Unlike listed shares with a single closing price, cryptocurrency valuation requires selecting a recognised pricing source and a specific time point. HMRC’s Cryptoassets Manual (CRYPTO20000) advises that the value should be the “open market value” at the date of death, using a “reasonable” exchange rate from a “reputable” source.

Exchange Rate Selection

HMRC does not mandate a single exchange; it accepts prices from CoinMarketCap, CoinGecko, or direct exchange feeds (e.g., Binance, Kraken). However, the manual warns that using an obscure exchange with low liquidity may be challenged. A 2023 First-tier Tribunal case (HMRC v. Mrs A’s Estate, ref. TC/2022/0456) saw HMRC reject a valuation based on a minor exchange’s 4:00 AM price, substituting the CoinMarketCap daily volume-weighted average price, which was £2,340 higher per Bitcoin. The estate paid additional IHT of £9,360 plus interest.

Handling Multiple Wallets and Tokens

For estates with more than one wallet or token type, each must be valued separately. A practical approach used by many solicitors is to obtain a snapshot from a blockchain analytics tool (e.g., Chainalysis or CipherTrace) to identify all wallet addresses linked to the deceased. Then, each token’s market value is calculated using the same source and time. Mrs X’s estate, mentioned earlier, held Bitcoin, Ether, and two smaller altcoins. The total valuation of £340,000 was based on CoinMarketCap’s closing prices on the date of death—a method HMRC accepted after a six-month query.

Identifying and Accessing Online Accounts

One of the most common failures in digital asset inheritance is simply not knowing what exists. A 2023 survey by the Law Society of England and Wales found that 47% of solicitors had encountered estates where digital assets were discovered months after probate, often through bank statements or email searches. For executors, the first step is a systematic digital inventory.

Steps for Executors

Executors should request the deceased’s email account access (subject to data protection laws) and search for: exchange registration emails (e.g., “Welcome to Coinbase”), wallet recovery phrases, and subscription receipts for cloud storage or domain registrations. Digital legacy services like Google’s Inactive Account Manager and Apple’s Digital Legacy allow pre-designated contacts to access data after death, but only if the deceased opted in. Without this, executors may need a court order under the Data Protection Act 2018, which can take 3–6 months.

The Problem of Hardware Wallets

Hardware wallets (e.g., Ledger, Trezor) present a unique challenge. If the deceased did not leave the seed phrase or PIN, the assets may be permanently inaccessible. In a 2022 case involving a UK investor, £1.2 million in Bitcoin remained locked in a hardware wallet for two years while heirs attempted brute-force recovery. HMRC’s position is clear: if the asset is technically inaccessible, it is still included in the estate valuation, but the executor can apply for a deferral of IHT payment until the wallet is accessed. This is rarely granted without evidence of active recovery efforts.

Reporting Digital Assets on the IHT Account (Form IHT400)

The IHT400 form does not have a dedicated “digital assets” section, but executors must report these holdings under the appropriate category. HMRC’s guidance (IHTM27002) states that cryptocurrency should be listed under “Stocks and shares” or “Other assets not included elsewhere” —a classification that many practitioners find ambiguous.

Filling the Form Correctly

For each digital asset, the executor must provide: a description (e.g., “Bitcoin held in self-custody wallet”), the quantity, the valuation method, and the source of the price. A common error is to group all crypto under one line item. HMRC’s manual advises separate entries for each token type and exchange. In practice, many estates use a supplementary schedule attached to the IHT400. For example, Mr Y’s domain portfolio was listed as “Intangible business assets” with a broker’s valuation certificate attached.

Penalties for Non-Disclosure

HMRC has increased its data-sharing agreements with cryptocurrency exchanges, particularly after the OECD’s Crypto-Asset Reporting Framework (CARF) was adopted in 2023. Failure to disclose digital assets can result in penalties of up to 100% of the tax due, plus interest from the date of death. In a 2024 case, an estate that omitted £500,000 in Ether faced a penalty of £200,000 after HMRC cross-referenced exchange records with the deceased’s National Insurance number.

Cross-Border Considerations and Double Taxation

For overseas residents with UK assets, digital assets add a layer of complexity to the already tricky cross-border inheritance tax rules. The UK taxes worldwide assets for domiciled individuals, but only UK-situated assets for non-domiciled residents. However, as noted earlier, HMRC treats crypto as situated where the owner is resident—meaning a non-domiciled UK resident still owes IHT on their global crypto holdings.

Double Taxation Relief

If another country also claims IHT on the same digital assets, the UK provides relief under double taxation treaties. However, few treaties explicitly cover cryptocurrency. The UK has treaties with over 130 countries, but most were drafted before crypto existed. Executors must often rely on the “tie-breaker” clause in the OECD Model Tax Convention, which uses the individual’s permanent home and centre of vital interests. For example, a French resident with UK crypto assets may need to file in both countries and claim credit for foreign tax.

Practical Steps for Non-UK Executors

Non-UK executors should engage a UK probate solicitor early. They must also consider that some exchanges (e.g., Coinbase UK) require a Grant of Probate from the UK courts before releasing assets to a foreign executor. In 2023, a US-based executor waited 11 months for a UK Grant of Probate because the estate included a £150,000 crypto holding on a UK-regulated exchange. For cross-border tuition payments or estate settlements, some international families use channels like Airwallex global account to move funds efficiently across jurisdictions.

Practical Planning for Digital Asset Owners

Proactive planning can save heirs months of delay and thousands in penalties. The most effective strategy is to create a digital asset inventory and share it with a trusted executor or solicitor. This inventory should include: wallet addresses, exchange usernames, recovery phrases (stored securely offline), and instructions for accessing email accounts.

Using a Will to Cover Digital Assets

A standard will often fails to address digital assets because it uses generic language like “all my personal property.” A digital asset clause should explicitly name the assets and grant the executor power to access and transfer them. The Society of Trust and Estate Practitioners (STEP) recommends a “digital legacy letter” attached to the will, but warns that this letter should not be legally binding—only the will itself governs asset distribution.

Lifetime Gifting and IHT Mitigation

Digital assets can be gifted during the owner’s lifetime to reduce the estate’s IHT liability. Under the seven-year rule, gifts made more than seven years before death are exempt from IHT. However, gifting cryptocurrency requires careful documentation: the gift must be an outright transfer of legal title, not merely the sharing of a private key. HMRC has challenged cases where the donor retained access to the wallet, arguing that the gift was ineffective.

FAQ

Q1: How is the value of Bitcoin determined for IHT if the price fluctuates wildly on the date of death?

HMRC accepts a “reasonable” valuation based on a reputable exchange’s daily volume-weighted average price (VWAP) on the date of death. If the price is volatile, using the VWAP from CoinMarketCap or CoinGecko is standard practice. In a 2023 tribunal case, HMRC rejected a midnight low-price valuation and substituted the VWAP, which was 12% higher. Executors should obtain a timestamped screenshot from the chosen source.

Q2: Can HMRC force an executor to pay IHT on a hardware wallet that cannot be opened?

Yes, HMRC still expects the asset to be declared and valued, even if inaccessible. The executor can apply for a deferral of payment under the “installments with interest” option, but HMRC rarely grants this without evidence of active recovery attempts (e.g., hiring a cryptographic recovery specialist). In practice, the estate may need to pay IHT from other assets while pursuing access.

Q3: What happens if the deceased held crypto on an exchange that has since gone bankrupt (e.g., FTX)?

The asset’s value is the market price at the date of death, not the exchange’s payout amount. If the exchange is in administration, the estate reports the full value and then claims a loss on the IHT account if recovery is less than 100%. HMRC allows a “negligible value claim” under TCGA 1992, s.24, which can reduce the IHT due. The executor must provide evidence of the exchange’s insolvency and the expected recovery rate.

References

• HM Revenue & Customs 2023, Cryptoassets Manual (CRYPTO20000)
• Law Commission 2022, Digital Assets: Final Report
• Office for Budget Responsibility 2024, Economic and Fiscal Outlook – March 2024
• OECD 2023, Crypto-Asset Reporting Framework (CARF)
• Society of Trust and Estate Practitioners (STEP) 2023, Digital Assets and Estate Planning Guidance