Cryptoassets are part of a deceased person’s estate for Inheritance Tax in the same way as shares or bank accounts, and executors must include them at their open market value on the date of death. The hard parts are practical: finding the holdings, getting access, and choosing a defensible sterling price for an asset that trades around the clock on many exchanges.

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Are cryptoassets taxed like any other asset on death?

Yes. Section 272 of the Inheritance Tax Act 1984 defines property as including all rights and interests of any description, and HMRC’s Inheritance Tax Manual confirms that this covers cryptoassets alongside cash, shares and buildings (IHTM04030). HMRC’s Cryptoassets Manual says they are treated as assets of the estate in much the same way as bank accounts, property and investments, and that the date of death value should be given when the estate is reported (CRYPTO25000).

Gifts of cryptoassets made in the seven years before death also count. GOV.UK’s guidance on valuing an estate lists cryptoassets among the types of gift executors need to identify. For the income tax and Capital Gains Tax rules that apply while the owner is alive, see how HMRC taxes cryptoassets.

How do executors find out whether there were any cryptoassets?

Crypto rarely shows up in the post. HMRC accepts that it may not be straightforward to tell whether the deceased held any, and CRYPTO25000 gives a checklist for personal representatives:

  • check for accounts with cryptoasset exchanges or trading platforms;
  • review bank and credit card statements for payments to exchanges or related services;
  • search emails for references to cryptoassets, Bitcoin, Ethereum, digital assets, wallets or exchange accounts;
  • look for mobile apps or online accounts used to buy, sell or store cryptoassets;
  • review computers, tablets and phones for wallet software;
  • search personal papers, notebooks and safes for wallet details or recovery phrases;
  • ask family members and advisers.

Holdings on an exchange are the easier case: GOV.UK tells executors to write to each organisation holding an asset for its value at the date of death, enclosing a copy of the death certificate, and an exchange can be approached in the same way. Self custody wallets are harder, because nobody holds a record except the blockchain itself and access depends on the private key or recovery phrase.

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How should cryptoassets be valued at the date of death?

Section 160 sets the general rule: the value of property is the price it might reasonably be expected to fetch if sold in the open market at that time. There is no official closing price for most tokens, which trade continuously in many currencies.

HMRC’s valuation guidance for cryptoassets says that many exchanges do not use sterling, so values must be converted, and where there is no direct sterling price an appropriate exchange rate must be established. It asks for reasonable care, a consistent methodology and a record of the method used (CRYPTO23000). In practice executors should:

  • pick a reputable source with a sterling or US dollar price at or close to the time of death;
  • apply the same source and time to every token in the estate;
  • keep screenshots or downloaded price data and the exchange rate used;
  • value each holding separately, including small or obscure tokens, and explain any that have no market.

Illustration only. The deceased held 0.5 of a token on an exchange and 10,000 of a smaller token in a self custody wallet. The executor takes the sterling prices published by one major exchange at the hour of death: £40,000 per whole unit for the first token and 5p for the second. The estate account shows £20,000 and £500, with a note naming the exchange, the time and the method. If the smaller token traded only on one overseas platform, that should be stated too.

Where do cryptoassets go on the IHT400?

The IHT400 notes tell executors to include in box 76 any other assets not listed elsewhere, expressly including cryptoassets that are considered to follow the location of their owner. Supporting detail belongs in the additional information section. Our guide to completing the IHT400 covers the rest of the form, and smaller estates may still qualify as excepted estates with no full account at all.

Personal representatives must deliver the account within 12 months from the end of the month of death or, if later, three months after they first act (section 216(6)(a)). If they cannot establish an exact value after making the fullest enquiries that are reasonably practicable, section 216(3A) allows a statement to that effect, a provisional estimate and an undertaking to deliver a further account once the value is known. A later value or a discovered wallet is reported on a corrective account.

What if the private keys or passwords cannot be found?

Lost access does not remove the asset from the estate. CRYPTO25000 says that where cryptoassets are known to exist but are believed to be inaccessible, executors should explain why they are inaccessible and what the value is believed to be in the additional information box of the IHT400.

For Capital Gains Tax, HMRC’s view is that misplacing a private key is not a disposal, because the key and the tokens still exist. If it can be shown there is no prospect of recovering access, a negligible value claim can be made, treating the tokens as disposed of and reacquired so that a loss is crystallised (CRYPTO22400). Because tokens are pooled, the claim covers the whole section 104 pool (CRYPTO22500).

Does it matter where the deceased lived?

For most UK residents, no. It becomes relevant for people who are not long term UK residents, or for deaths before 6 April 2025 where the deceased was not UK domiciled, because their non UK assets may be outside the charge (CRYPTO25000). There are no statutory location rules for cryptoassets in Inheritance Tax; general principles apply, subject to any double taxation agreement under section 158. HMRC’s view in CRYPTO22600 is that an exchange token with no underlying asset is located where its beneficial owner is resident, while a token that simply represents an underlying asset, such as gold, takes the location of that asset.

What happens if prices fall after death?

Volatility is the main financial risk. HMRC points out that, unlike quoted shares and property, cryptoassets do not qualify for loss on sale relief (CRYPTO25000), so a fall between death and sale does not reduce the Inheritance Tax bill.

For Capital Gains Tax, the executors or beneficiaries acquire the tokens at their market value on the date of death (section 62 Taxation of Chargeable Gains Act 1992), and the value ascertained for Inheritance Tax is taken as that market value (section 274). A fall after death therefore produces a capital loss for whoever sells, and a rise produces a gain. Personal representatives pay Capital Gains Tax at 24% on gains from 6 April 2026. See the CGT uplift on death.

What mistakes come up most often?

  • Leaving crypto off the account because nobody knew the password. Known but inaccessible holdings should still be disclosed with an explanation.
  • Using a price from a different day, or mixing sources, without recording the method.
  • Ignoring crypto gifts in the seven years before death.
  • Expecting loss on sale relief after a market fall.
  • Moving tokens before the date of death balances have been documented, which makes the valuation hard to evidence if HMRC opens an enquiry.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.