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HMRC treats corporate Bitcoin holdings as intangible assets — not currency. This creates specific accounting and tax obligations that every CFO holding crypto needs to understand.
Tax Treatment Overview
- Classification: Intangible asset (not currency)
- Gains: Corporation tax at 25% (2026 rate)
- Losses: Can offset against other profits
- Holding: No tax until disposal (but fair value applies)
Accounting Treatment
Fair value accounting is required — mark to market quarterly. Unrealised gains and losses hit your P&L and affect reported profit.
Worked Example: £10M Bitcoin Purchase
- Q1: BTC rises to £12M = £2M unrealised gain (taxed)
- Q2: BTC falls to £9M = £3M loss (offset against Q1 gain)
- Net position: £1M loss carry-forward
Key Insight: Fair value accounting means your tax bill fluctuates with Bitcoin's price — even if you haven't sold. Plan for this cash flow impact.
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Sento earns a referral if you click through our links — this never affects our recommendations. Prices and details correct at time of publication. Updated February 2026.