Bitcoin for a UK limited company

Checked 9 November 2026. Tax rates and rules change. Your accountant should confirm how they apply to your company.

This page is about United Kingdom companies. For the US, see C corporations, S corporations or LLCs. Other UK types: limited companies, LLPs.

How the company is taxed

A UK company pays Corporation Tax on its profits, including chargeable gains. GOV.UK gives a main rate of 25% and a small profits rate of 19%, with marginal relief for profits between £50,000 and £250,000; those limits are divided by the number of associated companies. A company that holds bitcoin as an investment usually works out a chargeable gain or loss when it disposes of it. HMRC's manual says the intangible fixed asset rules apply only where tokens are acquired for use on a continuing basis in the business, and tokens simply held do not meet that.

Bitcoin is usually pooled. HMRC's manual applies the section 104 pooling rules, with a same day rule and a ten day rule for companies that are different from the 30 day rule for individuals. See section 104 pool for a worked example.

Investment companies and marginal relief

GOV.UK says close investment-holding companies cannot claim marginal relief. Under section 18N of the Corporation Tax Act 2010, broadly, a close company is a close investment-holding company unless it exists wholly or mainly for permitted purposes, such as carrying on a trade on a commercial basis. A trading company that also holds bitcoin is normally still trading. A company whose main activity becomes holding bitcoin may not be, and could pay 25% on all its profits. This depends on facts, so ask the accountant if the bitcoin is a large share of the company.

Accounts

GOV.UK says a company is a micro-entity if it meets any two of: turnover of £1 million or less, £500,000 or less on its balance sheet, and 10 employees or less. Many micro-entities use FRS 105, which measures assets at historical cost: bitcoin stays at cost, less any impairment. Other small companies use FRS 102, where bitcoin is usually an intangible asset under Section 18, and the revaluation model is only possible with an active market. See FRS 105 and FRS 102.

Paying out to shareholders

A company can only pay dividends out of profits available for distribution. If it distributes bitcoin itself, section 845 of the Companies Act 2006 sets how the amount of the distribution is determined when the company has distributable profits, by reference to the book value of the asset. The tax treatment for the company and the shareholder is separate: for the company, giving away bitcoin is a disposal at market value. Plan any distribution in kind with the accountant.

Directors' duties

Directors must act within the company's powers (section 171), promote its success (section 172) and exercise reasonable care, skill and diligence (section 174). A written treasury policy, board minutes and a key register show how the board met those duties. See directors' duties and bitcoin.

If the company funds a purchase from retained profits, a new share issue or a director lending money to the company, the board minute and the books should say so. A director lending to the company is not the same as the company lending to a director, which can bring in the section 455 charge. See funding a company bitcoin purchase.

Reporting by providers

From 1 January 2026, UK cryptoasset service providers must collect the company's legal name, address and registration number under the Cryptoasset Reporting Framework, and some entities must give controlling persons. See CARF.

Common questions

What rate of Corporation Tax applies to bitcoin gains?

The same rates as other profits: 19% to 25% depending on total profits and associated companies, with marginal relief between the limits, unless the company is a close investment-holding company.

Does a UK company use the 30 day rule?

No. Companies use a same day rule and a ten day rule before the section 104 pool.

Can a micro-entity revalue its bitcoin?

No. FRS 105 uses historical cost. Revaluation is only possible under FRS 102, and only with an active market.

Directors can keep their home address off the public register by using a service address. See keyholder safety and privacy.

Sources

Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.

1. GOV.UKCorporation Tax rates and allowances
2. GOV.UKCorporation Tax: Marginal Relief
3. legislation.gov.ukCorporation Tax Act 2010, section 18N: close investment-holding companies
4. HMRCCRYPTO41150: Corporation Tax, intangible fixed assets
5. HMRCCRYPTO41350: Corporation Tax on chargeable gains, pooling and the same day and ten day rules
6. GOV.UKPrepare annual accounts for a private limited company: micro-entities, small and dormant companies
7. FRCFRS 105: The Financial Reporting Standard applicable to the Micro-entities Regime
8. FRCFRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
9. legislation.gov.ukCompanies Act 2006, section 845: distributions in kind, determination of amount
10. legislation.gov.ukCompanies Act 2006, section 171: duty to act within powers
11. legislation.gov.ukCompanies Act 2006, section 172: duty to promote the success of the company
12. legislation.gov.ukCompanies Act 2006, section 174: duty to exercise reasonable care, skill and diligence
13. HMRCInformation you need to give to UK cryptoasset service providers