Let’s talk money. Cryptocurrency, inheritance tax, and inflation, what should I know

cryptocurrency, inheritance tax, and inflation

At the start of any conversation about money, it is important to acknowledge that there are no simple answers. Money is a complex and multifaceted subject, and when it comes to things like cryptocurrency, inheritance tax, and inflation, things aren’t always straightforward. That being said, it is essential to gain a solid understanding of these topics in order to make informed decisions about your personal finances.


With around 300 million crypto users worldwide and over 18,000 businesses already accepting cryptocurrency payments, it is fast becoming more mainstream than ever before. But with this growth comes more regulation and compliance.

Our colleague Lauren recently ran a poll on LinkedIn to ask people at what point they thought crypto was taxable. 73% of respondents thought it was taxable at the point it was converted to GBP (or other fiat currencies), 18% believed it was taxable when converted to another coin, and the remaining 9% didn’t realise it was taxable at all.

As the poll suggests, the majority of individuals believe that Cryptoassets are taxable at the point in which it’s converted to GBP which is correct. However, what is less known is that Cryptoassets are also considered to be taxable when that asset is exchanged for a different type of token, or when they are used to pay for goods or services. This means that many individuals may be unaware that they’ve actually realised a taxable gain when inadvertently converting one coin for another, such as using Bitcoin to purchase Ethereum.

These gains will need to be declared on your Personal Tax Return and are likely to be subject to Capital Gains. With the 2021-22 tax year recently closing, now is an excellent time to start preparing the relevant details for your Personal Tax Return which will be due on 31 January 2023.

Inheritance tax

Love it or hate it, some level of understanding of inheritance tax laws is necessary to ensure that you properly structure your estate to help mitigate some of the burden on your heirs. With the house prices in Britain are rising, as is HMRC’s receipt of inheritance tax (IHT), particularly during the pandemic, is there anything you do to pay less inheritance tax?

40% IHT is normally payable on properties above £325,000, and with the steady increase in house prices (houses selling for more than £500,000 in London and the South East), more people are likely to face IHT charge from HMRC in the near future.

When it comes to IHT, planning ahead is the best way to save money.

Does it make sense for you to put your money in a trust? If you are looking to set up a trust, it may be beneficial to add your house and assets into the trust. Assets held in a trust are excluded from the death estate, thereby avoid IHT.

Annual gifting allowances can also be utilised. You can give £3,000 to family members and friends tax free in one year. You can use small gift allowance, which allows you to give up to £250 in gifts to as many people as you like (but not to anyone who has already received a gift within your £3,000 allowance).

Most importantly, spend your money whilst you’re still alive! The point of life is to live, it’s pointless losing sleep over your assets getting taxed at 40% after you pass away.


At the time of writing this article, we have entered a new tax year and have a brand new 2022-2023 ISA (Individual Savings Account) allowance to fill up. With UK inflation increasing by 7%, here is why ISA’s should be part of your investment portfolio, especially as a way to mitigate some of the impact of inflation.

As an adult in the UK, you have an allowance of £20,000 which you can put into ISAs every year, however any unused portion can’t be brought forward. Interest generated on money held in all forms of ISAs is tax-free, but cash ISAs aren’t a good idea because their interest rates are much lower than inflation, for example, 1% fixed cash ISA vs 6% inflation, meaning the money you have sitting in your bank account is losing its value.

A stocks and shares ISA differs from a cash ISA in that you invest your money rather than receiving interest on it. If you invest in a company that produces a profit, the growth will be tax-free if you do it through an ISA. This can be a significant financial benefit, as money earned outside of an ISA is subject to dividend tax, as well as capital gains tax if you sell shares for a profit and will be added to your overall income tax liability.

You should only invest in a stocks and shares ISA if you have emergency cash savings that cover 3-6 months’ worth of living expenses. Also, companies go bankrupt, prices fall, and stock markets can be quickly startled by major world events, thus investing has the risk of losing money.

There is no absolute means to beat inflation through investing, but there are a few options that could help you out. To learn more, click the blog article here.

If you’re looking to discuss any of the above topics with us, please feel free to reach out

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ben crampin


Ben’s been here pretty much since the get-go and, as such, has been instrumental in growing the business into what it is today.
He’s passionate about, in his words, ‘helping people and businesses that are just constantly being taken advantage of’ by providing affordable advice and support with an eye to ‘levelling the playing field’.
Ben looks forward to the day when automation will, once and for all, fumigate the fear and confusion caused by oppressive bureaucracy and strongly believes that ‘technology holds the solutions to the problems we’re trying to solve’.
Furthermore, he can see that technology will, in time, provide the scalability required to help a theoretically limitless number of SMEs survive and thrive against the odds.
Ben doesn’t think much of government agencies and he doesn’t suffer fools; two points that aren’t always mutually exclusive.