In the UK, cryptocurrency is considered a type of asset that is digitally represented and can be stored, transferred, or traded electronically. By law, the tax treatment of crypto assets depends on their nature and use.
Her Majesty’s Revenue and Customs (the HMRC), the government agency that collects taxes and sets related regulations, classifies crypto in three forms: security tokens or a type of equity in businesses, utility tokens, and exchange tokens or a form of currency coins such as bitcoin.
Individuals could be obligated to pay a capital gains tax when they make a profit out of crypto. However, buying crypto itself is not taxable in the UK. What triggers a taxable event is when you swap or ‘dispose’ of it for another asset or fiat.
Here’s a guide on the top ten tax-friendly exchange sites in the UK that you can use to enjoy a hassle-free journey into the world of cryptocurrency. If you use one of them with a smart tax tool like Accointing.com, you are always on the safe side.
As one of the largest cryptocurrency platforms online, Coinbase gains a rightful place on this list. The site is straightforward to use when buying or selling crypto. While prices aren’t the most affordable, it’s simple enough to use for beginners who want to start strong via a single trade.
The four cryptocurrencies available are Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).
Binance enjoys a reputation of being the most significant global exchange platform. Its customers reap several benefits, including low fees, good support, and adequate security. They offer excellent exchange rates and have several options when it comes to funding your account.
3. Kraken Exchange
One of the oldest exchanges, Kraken, is another excellent, tax-friendly option for crypto traders. You will have more than fifteen cryptocurrencies available. It also allows trading on futures, although this feature is advanced and comes with many risks.
CoinJar Exchange started in 2013 and remained a frontrunner in the market. It is dubbed as the best exchange platform for beginners in the UK. The user interface is simple, and customer support is commendable as well. It also offers one of the lowest fees in the country.
If you are headquartered in the UK, CEX is a fair exchange option for you. The platform provides superb security and faster payments that can be made in the local currency. You can also deposit funds using Mastercard or Visa, which is a feature not offered by many.
6. Coinburp Exchange
Coinburp might have a limited number of cryptocurrencies supported, but the platform allows you to instantly deposit fiat from your bank account. It is an excellent exchange for an easy-in-easy-out interaction with the market. You get access to the most common coins securely.
Similar to Binance, the ChangeNOW exchange platform offers support for plenty of crypto coins. It’s incredibly safe to use and is tax-friendly for both retail and high-volume trading. The support team is also very attentive to customer requests, which is a plus for any platform.
8. Coinfloor Exchange
The UK’s oldest exchange, Coinfloor, is a haven for advanced traders who want to get a personalized experience. It supports BTC, BCH, and ETH only, but the site’s approach is refined and covers everything you need.
Quickbitcoin is a UK-based platform that boasts fast transactions via standard bank transfers. It can process dealings in ten minutes or less and offers a simple way of purchasing coins.
10. BC Bitcoin
If you want a reliable exchange, BC Bitcoin can provide it and more. It is a bespoke brokerage firm for cryptocurrency that offers a wide range of options. Transfers are immediate when made within the UK because it also based in the country.
These top ten exchanges are praised for delivering the best of the best when it comes to cryptocurrency. If you want tax-friendly transactions, these trusted platforms are the way to go.
Delving into cryptocurrency can be hectic, especially when dealing with taxes. It would be best for you to seek expert help and use tools like that offered by Accointing to ensure that you are gaining and meeting your obligations simultaneously.