Sounds great, does it support my wallets and exchanges?
Absolutely. Absolutely! Recap supports all exchanges and wallets automatically via API or CSV import.
Real-time sync to accounts on major exchanges like Binance, Coinbase, Kraken, Luno and Uphold
Automated support for Ethereum wallets including NFTs, DeFi & DEX trading
CSV import for all other exchanges, wallets and chains
Private by design - all account data is encrypted on your device and never accessible to us or third parties
Frequently Asked Questions
- Do you pay tax on crypto in the UK?
- Yes, HMRC have confirmed that cryptoassets are taxable in the UK. Most crypto gains will be subject to Capital Gains Tax but sometimes Income Tax can apply. The tax treatment depends on the type of activity.
- How much tax do I have to pay on crypto in the UK?
- You will have to pay capital gains tax on your gains above the annual capital gains tax exemption (£12,300 for the 2021/22 tax year) at a rate of 10% or 20% depending on if you are a basic or higher rate tax payer. Note, the CGT exemption is not exclusive to crypto - capital gains from other property should also be included.
- How do I calculate my crypto capital gains in the UK?
- The allowable costs are deducted from the disposal proceeds, to calculate the capital gain (or loss) for each individual disposal made in the tax year. The sum of these gains is your total crypto capital gain for the year. Although this sounds simple, it can be a mammoth task for users with high volumes of trading activity. There are also complexities like sourcing reliable, consistent valuations for assets and application of HMRC rules like Section 104 pooling to be considered.
- How does Recap help with crypto tax in the UK?
- Recap calculates crypto taxes automatically providing peace of mind for crypto traders! Once you have imported all of your transactions, Recap finds the fair market value for your assets at the time of each trade, applies all HMRC rules (including Section 104 pooling and bed and breakfasting) and calculates your capital gains and income taxes! You can download all the tax reports needed to file your self assessment or share with your accountant.
- How do I avoid crypto tax in the UK?
- If your crypto gains fall above the annual exemption amount, you cannot avoid crypto tax in the UK. Non-compliance is fraud and you may be investigated by HMRC. However, with clever tax planning you can optimise your crypto taxes to make the most of capital gains allowances. Consult a tax advisor or check out our blog for ideas.
- Can HMRC track crypto?
- Although crypto is pseudonymous, all transactions are visible on the online ledger meaning that activity is traceable and trails can lead back to an individual. KYC is also evolving, HMRC are known to have demanded user data from exchanges and have sent educational nudge letters to crypto users in their sight.
- Do crypto exchanges report to HMRC?
- It is well known that HMRC seek data from crypto exchanges that do business in the UK. In 2019 it was reported that they had sent letters to Coinbase, eToro and CEX requesting customer data and transaction history. Coinbase have confirmed to users that they have shared information with HMRC.
- Are crypto to crypto trades taxable in the UK?
- Yes. Crypto to crypto trades are classed as a taxable disposal and should be treated for capital gains tax.
- Do I have to declare my crypto holdings to HMRC?
- Providing you have not generated taxable disposals above the annual capital gains tax exemption, no, you do not need to declare your crypto holdings to HMRC. You may have purchased and now hold crypto that has increased in value, but until that gain is realised (when you make a disposal) it is not necessary to declare.
- Do I need to report crypto losses to HMRC?
- It is in your best interest to report crypto losses as they can be claimed against future capital gains for up to four years. This can be done via self assessment if you need to file for another reason or by letter to HMRC.
- How do I report my crypto tax in the UK?
- In the UK, crypto taxes should be reported via the self assessment tax return. The UK tax year runs from the 6th April to 5th April and the filing and tax deadline for reporting is 31st January of the following year. For example for the 6th April 2021 - 5th April 2022 tax year, the tax return is due on 31st January 2023.