CryptoTax UK · Guide

Crypto and Divorce UK — HMRC Tax Guide

Crypto assets in a divorce settlement raise specific UK tax issues. This guide explains the no-gain-no-loss relief for transfers between spouses and what happens after the tax year of separation. Educational only — not tax advice; always seek specialist family and tax legal advice in divorce proceedings.

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No-gain-no-loss transfers between spouses

Transfers of crypto between spouses or civil partners who are living together are made on a no-gain-no-loss basis for CGT. This relief applies in the tax year of separation and for up to 3 years after the tax year of separation under rules introduced in April 2023.

After the no-gain-no-loss period ends

Once the 3-year window closes (or on formal legal divorce, if earlier), transfers between former spouses are treated as market value disposals. The transferor may have a CGT liability.

Disclosure of crypto assets in proceedings

Both parties must disclose all assets including crypto in divorce proceedings. Attempting to conceal crypto assets is a serious legal issue.

Frequently asked questions

Is transferring Bitcoin to my spouse in a divorce taxable?

In the tax year of separation and for up to 3 years after, the transfer can be made on a no-gain-no-loss basis — so no CGT arises at the time of transfer. After that window, market value rules apply.

More UK crypto-tax guides

HMRC Crypto Tax Guide

Plain-English HMRC rules

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Educational guidance only. CryptoTax UK is not a regulated tax adviser and the information above does not constitute tax, legal or financial advice. Always confirm your specific position with HMRC or a qualified accountant before filing.