Inheriting Bitcoin Just Became Legal — But HMRC's 40% Tax Bill Is Due in 6 Months (And a Nightmare Scenario Looms)

Cryptocurrency is now inheritable in the UK—but a £70,000 tax bill often leaves families unable to access the funds. (Credit: Pixabay)

Crypto owners can now legally leave their Bitcoin to family when they die—but there's a catch. HMRC will take 40% of any estate over £325,000, and families have just six months to pay.

Britain quietly made history on 3 December when it became one of the first countries to recognize cryptocurrency as property that can be inherited, just like a house or savings account. About 8 million Brits—12% of adults—now own crypto, triple the number from 2021. Yet most have never considered what happens to their digital assets after they're gone, or the tax bill that awaits the inheritors.