Investments  

Advisers warned of tax on bitcoin

Another issue potentially faced by advisers is when a deceased client leaves cryptocurrencies as part of the estate, according to David Thomas.

The founder of Globalblock said he is frequently approached by law firms and executors of estates who need to value crypto assets for probate, and to sell the assets.

He added that people often leave unclear instructions about how to get the crypto asset from where it is stored, and this creates further problems.

Mr Thomas said: "We have been hired by law firms who need to value the crypto assets left behind, and with some of the less well known assets we had to try to fund liquidity for the estate." 

Brian Dennehy, of Dennehy Weller, an advice firm in Kent, said he advised any client who asked him about crypto currencies to avoid them, and added those clients "don't ask me about cryptocurrencies now." 

HMRC recently published guidance on the tax implications of cyrptocurrency assets, signalling its interest in the field.

The guidance stated most of those with gains are expected to have to pay capital gains tax. A representative of the tax authority said HMRC has a "pretty thorough policy" on cryptocurrency assets.

david.thorpe@ft.com