Yes. Coinbase has reported information to HMRC for users on its platform which have a UK address and have received more than £5,000 worth of crypto. Coinbase alerted UK users of this fact in 2021. Given that Coinbase is a licensed business in the UK, the exchange is likely to continue reporting to HMRC as required by UK law.
HMRC has used data matching to crack down on crypto tax fraud. By using information provided by exchanges like Coinbase, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
Yes. In the UK, your transactions on Coinbase or other platforms are subject to capital gains tax and ordinary income tax.
If you’ve earned or disposed (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to HMRC.
For more information, check out our complete UK guide to cryptocurrency taxes.
Yes. Coinbase operates legally in the UK.
Remember, there is no way to legally evade your taxes in the UK. However, tools like tax-loss harvesting and cryptocurrency tax software can help you save thousands of dollars legally.
For more information, check out our guide on how to avoid crypto tax in the UK.