Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Ledger’s tax reporting policies within United Kingdom. We’ll also break down a simple way to report your Ledger taxes in minutes.
Does Ledger report to HM Revenue & Customs (HMRC)?
HMRC has requested UK taxpayer information from the largest exchanges and wallets operating within the country. While it has not been confirmed whether Ledger has complied with requests of HMRC, other prominent exchanges such as Coinbase have stated that they cooperated by turning over transaction details for users who received more than £5,000 worth of crypto on its platform.
What does HMRC do with the information that Ledger provides?
HMRC has used data matching to crack down on crypto tax fraud. By using information provided by exchanges and wallets like Ledger, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
Do I have to pay taxes on my Ledger transactions?
Yes. In the UK, your transactions on Ledger or other platforms are subject to capital gains tax and ordinary income tax.
If you’ve earned or disposed (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to HMRC.
For more information, check out our complete UK guide to cryptocurrency taxes.
Is Ledger legal in the UK?
Yes. Ledger operates legally in the UK.
Get a Ledger tax report today
Looking for a simple way to report your Ledger taxes? With CoinLedger, you can import your Ledger transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Ledger 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.
