Key takeaways
- Phantom does not report directly to HMRC.
- HMRC can still trace Phantom activity using blockchain analytics. Upcoming CARF reporting rules will give the agency more insight than ever before into crypto transactions.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Phantomâs tax reporting policies within United Kingdom. Weâll also break down a simple way to report your Phantom taxes in minutes.
What is Phantom Wallet?
Phantom is a Solana-based wallet available as a mobile app and browser extension. It allows users to hold tokens and interact with decentralized apps built on Solana.Â
Because itâs non-custodial, Phantom doesnât hold your funds or require Know Your Customer (KYC). If you purchase crypto with a card or bank account through Phantom, the provider may require KYC.
While Phantom doesnât report to HMRC, itâs still possible for your activity to be tracked when you transfer to/from a centralized exchange.
Does Phantom Wallet report to HMRC?
No. Phantom does not share data with HMRC or issue tax forms.Â
However, itâs likely the HMRC can track your Phantom transactions:Â
- Blockchain analytics: All Phantom transactions are publicly visible on the blockchain. If you transfer crypto between Phantom and a centralized exchange, itâs likely the HMRC can identify you. â
- CARF in 2026: The UK will implement the Crypto-Asset Reporting Framework (CARF), requiring UK-based exchanges and custodial wallets to share detailed customer and transaction data with HMRC. While itâs unlikely that this will apply to Phantom, CARF rules will give the HMRC more information they can use to identify âanonymousâ wallets.
If I use Phantom Wallet in the UK, do I owe taxes?
Yes. Crypto activity on Phantom and other wallets is subject to tax in the UK.
- Capital gains: Selling, swapping, or spending crypto through Phantom is a taxable disposal subject to capital gains tax.Â
- Income: Rewards from staking, mining, and airdrops are taxed as income at market value at receipt.Â
Itâs important to note that moving crypto between Phantom and other wallets you own is not taxable.
Does Phantom Wallet have KYC?
No. Phantom is a decentralized wallet and does not have KYC verification.Â
Is Phantom Wallet legal in the UK?
Yes. Phantom is legal in the UK.
You are required to report taxable income from Phantom on your tax return.Â
How do I reduce my Phantom Wallet taxes in the UK?
While thereâs no way to legally evade your taxes, here are steps you can take to reduce your bill in the UK:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset gains and lower your tax liability. If you have crypto thatâs lost value, consider selling for tax benefits! â
- Using crypto tax software: Crypto tax software like CoinLedger makes it easy to track your Phantom transactions and spot your biggest opportunities to save money on taxes.
Looking for a simple way to report your Phantom taxes? With CoinLedger, you can import your Phantom transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Phantom and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Tracking your transactions on multiple wallets and exchanges for tax purposes can be overwhelming. Hereâs how CoinLedger can help:Â
- Automatically import transactions from Phantom and hundreds of other wallets and exchanges.Â
- Track capital gains and income in real-time.Â
- Generate ready-to-file HMRC tax reports in minutes.
Get started with CoinLedger.
