Crypto inheritance tax in the UK: what executors should tell HMRC

For searches such as “crypto inheritance tax UK”, the practical question is what a personal representative must find and report when someone dies. Personal representatives dealing with the estate need to identify and value its assets. Cryptoassets can be easy to overlook because they may sit in an exchange account, a phone app, a hardware wallet or a self-custody wallet controlled by a recovery phrase. UK inheritance-tax guidance from HM Revenue and Customs (HMRC) treats cryptoassets as assets of a person’s estate. This guide explains where to look, what the IHT400 asks for and how to document a valuation without confusing a wallet balance with an accessible bank account.

The rules below are general information for UK estate administration, not legal or tax advice for a particular estate. The exact forms and reporting duties depend on the estate and the deceased’s circumstances. Use the current HMRC manuals and forms, and speak to a probate or tax professional if ownership, access, location or valuation is disputed.

Are cryptoassets part of a UK estate?

HMRC’s Cryptoassets Manual says cryptoassets are treated as assets of a person’s estate in much the same way as bank accounts, property, shares and investments. It says a date-of-death value should be provided when an inheritance-tax return is submitted. Whether inheritance tax is ultimately payable is a separate calculation based on the estate and the reliefs, exemptions and thresholds that apply. The existence of a wallet does not by itself establish the tax bill, but it should prompt the personal representatives to investigate and keep a record of the decision.

HMRC’s February 2026 Trusts and Estates Newsletter specifically tells representatives to confirm whether cryptoassets are held when completing form IHT400. It identifies box 76 and asks for details in the “Additional information” section. Read the current HMRC cryptoassets and Inheritance Tax manual alongside the HMRC February 2026 newsletter; form instructions can change.

How to look for crypto in the estate

Start with records the deceased left behind, not with guesses based on a family member’s phone. HMRC’s checklist suggests checking whether the person had accounts with crypto exchanges or trading platforms; looking through bank and credit-card statements for payments to crypto services; searching email for names such as Bitcoin, Ethereum, wallet or exchange; and reviewing mobile apps, computers, tablets, personal papers and secure storage. Ask family members, advisers or others involved in the person’s finances whether they know of any holdings.

Keep an investigation log. Record the account or device reviewed, the date, the person who provided the information and what was found. A bank payment to an exchange may indicate a purchase, but it does not prove that the asset remains there at death. An old exchange email may relate to a closed account. Ask the provider about the deceased’s account and its process for a personal representative; keep a copy of the request and response. Do not use someone else’s credentials or attempt to bypass security controls.

Distinguish an exchange-held balance from a wallet the deceased controlled directly. A wallet address visible on a blockchain does not necessarily identify its owner by itself. Transaction records, exchange statements, wallet software, estate papers and reliable testimony may help connect an address to the person. Record the evidence and any remaining uncertainty rather than presenting an unverified on-chain balance as confirmed ownership.

What if a wallet is inaccessible?

An inaccessible cryptoasset is not automatically the same thing as an asset that does not exist. HMRC’s manual says that if cryptoassets are identified as belonging to the deceased but are believed to be inaccessible, the personal representatives should explain why they cannot be accessed and give the value they believe they had in the IHT400’s additional-information box. That gives HMRC the context it needs; it is not a guarantee that a particular valuation or tax treatment will be accepted.

Do not put a recovery phrase, private key or password in an inheritance-tax return, ordinary email or an unverified support portal. Those credentials can allow anyone who receives them to move assets. Store sensitive recovery information securely, limit access to the people who need it to administer the estate, and use professional help if the wallet or device is unfamiliar. Preserve evidence of searches, damaged devices, failed recovery attempts and any correspondence that explains why access was not possible.

HMRC’s manual also notes that cryptoassets do not qualify for loss-on-sale relief in the same way as property and shares. This is a technical point for estate administration, not a direction to sell or hold assets. If a wallet is inaccessible, its price later falls, or a provider releases funds after probate, ask an adviser how the facts affect the estate’s reporting and any later correction.

How to support a date-of-death valuation

The relevant point is the value at the date of death, not the price when an executor later opens the account or submits a form. Crypto prices can move sharply, and different venues may show different prices or trading activity. Keep a valuation note showing the asset, quantity, date and time basis, currency, source or venue, and the method used to convert the figure into pounds. Save the exchange statement, export, screenshot or other source record that supports the calculation, and explain if there was no reliable price or the asset could not be accessed.

Do not substitute a current portfolio screen for the death-date valuation. Reconcile what was held at the relevant time with records before and after death, including deposits, withdrawals, staking or exchange activity where relevant. Where quantity, ownership or market value is uncertain, describe the uncertainty and how the estimate was reached. If a professional valuation is appropriate, retain the instruction and report. Clear working papers help another representative or HMRC follow the calculation.

Reporting and estate deadlines

If the estate requires a full inheritance-tax account, HMRC says the personal representatives must report the full details of assets, debts, gifts, reliefs and exemptions using form IHT400. Its guidance says to submit the form within 12 months of the person’s death and before applying for probate when probate is needed. The IHT400 is not replaced by a spreadsheet or a crypto exchange statement; those records support the figures entered in the form.

The HMRC instruction is to report cryptoassets in box 76 of IHT400 and add relevant details in “Additional information”. Use the current form and its notes to see exactly what information is requested. If the estate qualifies for a different or excepted-estate route, the reporting process may differ. The official GOV.UK guidance on valuing an estate and submitting IHT400 explains when full details are needed and how the deadline works. Check current rules before relying on a previous estate’s process.

A practical executor checklist

  • Search bank and card statements, email, devices, papers and secure storage for evidence of crypto accounts or wallets.
  • Confirm whether each holding belonged to the deceased and whether it was held on an exchange or in a self-custody wallet.
  • Record the quantity and a supported value at the date of death; retain the valuation method and source.
  • If assets appear to belong to the estate but cannot be accessed, document why and the value believed, for the IHT400 additional-information section.
  • Protect private keys and recovery phrases; never put them in an ordinary tax return or send them to an unverified contact.
  • Use the current IHT400 instructions and verify whether the estate needs a full account and which deadline applies.

Crypto inheritance tax is mainly an estate-identification and evidence problem before it becomes a calculation. A careful trail of account enquiries, ownership evidence and valuation records helps personal representatives explain what was included, what was inaccessible and how the figures were reached. For more crypto risk and custody explainers, visit the risk-management and execution hub or browse the CryptoSigy UK articles. For an estate-specific decision, use HMRC’s current guidance and obtain professional advice where needed.