HMRC Inheritance Tax and Cryptoassets: A UK Guide for Executors and Professionals

How cryptoassets fit into UK estate administration: valuing holdings, gathering evidence, reducing delays, and avoiding scams during probate.

Introduction

[Back to Insights](/insights) When someone dies, cryptoassets do not behave like a bank account. The family must first identify what exists, then value it, then recover access — often under time pressure, with high scam risk. This guide explains the practical steps professionals and executors should take, aligned to HMRC expectations and real-world recovery constraints. Non-custodial coordination. Not financial advice.

Step 1: Identify and evidence what exists

Before valuation, you need discovery: - Which exchanges or platforms were used? - Are there self-custody wallets? - Which devices matter (phone, laptop, hardware wallet)? - Is there a record pack or transaction history? A simple platform and wallet inventory is often the difference between a smooth administration and months of confusion.

Step 2: Valuation approach (practical)

For IHT and estate reporting, holdings need a GBP value at the relevant date. The key is having defensible evidence: - Exchange statements and exports - Transaction history and wallet evidence where appropriate - Clear notes on how the GBP valuation was derived

Step 3: Recovery planning (probate reality)

Executors are rarely technical. They need a workflow: - Secure devices and accounts - Prevent SIM-swap and email compromise - Follow a documented escalation order - Avoid "support" scams and fake recovery services See also: /insights/crypto-recovery-scams-uk

Step 4: Keep keys separate from documents

An estate pack should never contain seed phrases or private keys. That turns the pack into a theft target and increases risk to the family. See also: /insights/seed-phrase-storage-best-practices-uk

Where Bitzo fits

Bitzo helps families and professionals coordinate a documented, verified recovery pathway while the client remains non-custodial. We do not hold keys and never ask for seed phrases, private keys, or wallet passwords.

Next steps

If clients hold crypto, inheritance readiness should be built now, not after a crisis. - Adviser programme: /advisers - Book a call: /book - Inheritance overview: /inheritance [Back to Insights](/insights)