Crypto Wealth Management in the UK: Secure Your Digital Legacy

As cryptocurrencies and digital assets become an increasingly mainstream part of modern portfolios, managing this wealth effectively—and securely—has never been more important. In the UK, where crypto is now under the watchful eye of HMRC and inheritance tax (IHT) planning is crucial, crypto wealth management is no longer just a technical issue—it’s a financial and legal imperative. 

Why Crypto Wealth Management Matters 

Many investors hold significant value in crypto assets such as Bitcoin, Ethereum, and even NFTs. But while the technology behind these assets is decentralized and borderless, your tax obligations, estate planning, and wealth management responsibilities are very much rooted in UK law. 

Neglecting to manage your crypto holdings like other assets can lead to: 

• Loss of access after death (due to poor key management) 

• Unexpected capital gains and inheritance tax bills 

• Legal disputes over ownership 

• Lack of clarity for beneficiaries or executors 

Key Considerations for Crypto Wealth Planning 

1. Secure Access & Succession Planning 

Crypto assets are typically stored in private wallets protected by seed phrases or keys. If these are lost, the funds are lost—forever. 

What you can do: 

• Use secure, offline (cold) wallets for long-term storage 

• Keep a documented, encrypted backup of your keys 

• Instruct executors or family members on how to access your assets 

• Use a solicitor to draft a digital asset clause in your will 

2. Inheritance Tax (IHT) Implications 

Crypto is classed as property under UK law and is subject to Inheritance Tax at the standard 40% rate above the £325,000 nil-rate band. 

Planning tips: 

• Use trusts or family investment companies (FICs) to structure ownership 

• Gift crypto early (considering Capital Gains Tax rules) 

• Consider domicile and residency issues for global crypto holders 

➡️ Read more on Crypto & Inheritance Tax after the 2024 Budget 

3. HMRC Compliance and Reporting 

From 2024, the Self Assessment tax return includes a new cryptoasset section. HMRC is cracking down on undeclared gains and non-compliant wallets. 

Stay ahead by: 

• Keeping detailed records of all transactions (including airdrops, forks, gifts) 

• Using platforms like Koinly to track and report 

• Working with a specialist crypto accountant for proactive tax planning 

4. Trusts, Executors, and Digital Custody 

Unlike traditional assets, digital assets require more than just legal documents. They require digital infrastructure and technical knowledge. 

Solutions: 

• Appoint tech-savvy executors or include a digital custodian in your estate 

• Use professional services offering crypto trusteeship or digital vaults 

• Clearly list your holdings, wallets, and platforms in an encrypted “crypto will annex” 

Why Work With a Specialist? 

Crypto wealth management isn’t just about taxes or wills. It’s about protecting generational wealth in an evolving regulatory and technological landscape. At My Accountancy Team, trading as MyCryptoTax.co.uk, we specialise in: 

• Crypto tax reporting & HMRC disclosures 

• Estate and IHT planning for digital assets 

• Wealth structuring using trusts and companies 

• Cross-border planning for international crypto holders 

Ready to Secure Your Digital Future? 

Don’t leave your crypto to chance. Whether you’re a HNW investor, entrepreneur, or simply holding long-term digital assets, contact us today to book a crypto estate planning consultation. 

FAQ’s

DISCLAIMER

© My Accountancy Team 2025 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. My Accountancy Team Ltd t/a mycryptotax.co.uk, cannot be held responsible for the consequences of any action or the consequences of deciding not to act.