HMRC is increasing visibility into cryptocurrency activity. Lengthy portfolios can create reporting errors if transactions are not calculated correctly. Under the OECD Crypto-Asset Reporting Framework, trading, staking, DeFi activity, and NFT transactions can create complex tax obligations.
Legend Fusions UK specialises in calculating and reporting cryptocurrency tax positions for investors, traders, and digital asset users. We make sure your reporting is accurate, compliant, and built to withstand HMRC scrutiny.
Legend Fusions is the UK advisory brand evolved from Legend Financial & Tax Advisers, unifying tax, compliance, and advisory services under one international group.
Serving clients in London, Bolton, Milton Keynes and throughout the UK.
Complex crypto disclosures for HMRC compliance and investigations.
Most people do not realise how exposed they are until we map the full picture.
By the time you are ready to file, the complexity has multiplied across tax years, platforms, and asset types. At Legend Fusions, we reconstruct everything before a single number goes on your return.
✓ Consolidate trading activity across every exchange and wallet you have used
✓ Reconstruct transaction sequencing under HMRC’s matching rules
✓ Apply Section 104 pooling and 30-day rules correctly, no shortcuts
✓ Separate Capital Gains Tax exposure from Income Tax treatment
✓ Confirm interaction with existing income and prior year losses
✓ Identify gaps or inconsistencies before HMRC’s data team does
Under CARF, every UK exchange must now report your name, transactions, and realised gains directly to HMRC.
If you have done any of the following, you have a reporting obligation:
✓ Sold crypto for GBP or foreign currency
✓ Exchanged one token for another, even if no cash left your wallet
✓ Received crypto as income from staking, mining, or airdrops
✓ Participated in DeFi lending, liquidity provision, or yield farming
✓ Transferred assets between exchanges without perfect records
✓ Incurred capital losses you want to claim
✓ Failed to disclose crypto gains in previous years
✓ Used overseas exchanges that now share data with HMRC
HMRC’s systems are built to spot gaps. And we make sure yours do not have any.
HMRC cross-references exchange data, blockchain activity, and information submitted through Self Assessment tax returns. Discrepancies can trigger compliance checks or enquiries.
Blockchain transactions are permanent. If crypto transactions are reported incorrectly, discrepancies can surface years later. We ensure your tax position is accurate, compliant, and fully supported by a clear transaction history.
| Activity | Tax Type | Rules |
| Selling crypto for GBP | Capital Gains Tax | Disposal event. Gain is equal to proceeds minus allowable cost. |
| Swapping one token for another | Capital Gains Tax | Treated as disposal even if no cash leaves your wallet. |
| Spending crypto on goods/services | Capital Gains Tax | Disposal at market value of goods received. |
| Gifting crypto (not to spouse) | Capital Gains Tax | Treated as disposal at market value. |
| Staking rewards | Income Tax + CGT | Income tax at receipt. Later disposal of rewards = CGT. |
| Mining income | Income Tax | Taxed as miscellaneous income at market value when received. |
| Airdrops | Income Tax / CGT | Income tax if received for no consideration. CGT if disposed later. |
| DeFi lending interest | Income Tax | Taxed as income when received. |
| NFT sales (creators) | Income Tax | Treated as trading income if created/sold regularly. |
| NFT sales (collectors) | Capital Gains Tax | Disposal of asset. Gain = sale price minus cost. |
Crypto tax compliance that stands up to scrutiny: Accurate calculation, compliant reporting, and a defensible position should HMRC ever initiate a compliance check.
We have simplified the handover. Here is exactly what we need.
✓ Exchange transaction history (CSV format): Coinbase, Binance, Kraken, Crypto.com
✓ Wallet addresses (public keys): Bitcoin, Ethereum, and other chains used
✓ Staking, mining, and airdrop records: Including reward dates and values at receipt
✓ DeFi transaction logs: Uniswap, Aave, Lido, and other protocol activity
✓ Previous tax returns (if applicable): Particularly if prior-year disclosures are needed
✓ NFT minting and sales records: Platform, date, proceeds, and cost basis
Missing something? Do not worry. We help reconstruct.
We map every transaction across exchanges, wallets, and protocols, so nothing gets missed.
We calculate your position using the same rules HMRC expects.
We submit your return and keep full records. If HMRC ever comes looking, you are ready.
We determine exactly what you owe, at the right rates, reported the right way.
We remain on hand after filing. Questions from HMRC? Concerns about next year? You have a dedicated specialist who already knows your history.
This service includes transaction reconstruction, HMRC-compliant calculation, and Self Assessment reporting. Does not include investment advice or trading strategy.
“The transaction history was reconstructed properly, and the gain was calculated in line with HMRC crypto guidance. The disclosure was structured correctly before submission.”
Crypto Investor, Manchester
“Multiple exchanges and staking rewards made the position complex, but everything was reviewed and reported accurately. The approach was controlled and technically sound.”
Private Investor, Birmingham
“Historic crypto activity was corrected without escalation. The calculations were clearly set out, and the filing was managed efficiently.”
Consultant, London
Support responding to HMRC enquiries, compliance checks, and investigations.
Advice on overseas income, residency status, and UK tax obligations.
Eligibility review and claims support for qualifying research and development activity.
Guidance on investor reliefs, eligibility, and compliance requirements.
Planning support where estate exposure is identified.
Capital Allowances Review and claims to ensure qualifying expenditure is identified and applied correctly.
We do not expect your portfolio to look like anyone else’s. Even if you have got hundreds of trades a year, staking rewards to untangle, or historic disclosures to make, we will meet you where you are. And we will treat your unique story with the same forensic care that we would give to any client.
Speak with a tax consultant to review your situation, clarify what s required, and deal with your return properly.
Initial review within 48 hours. Standard tax returns completed in 5-7 working days. Complex DeFi portfolios typically require 10-14 working days for full assurance.
