Are donations of Bitcoin made via exchanges leaving the donor wondering whether a valid tax receipt will follow? For many, the friction is not the act of giving but the documentation: how to prove the donation to HMRC, how to record the disposal for capital gains tax and whether Gift Aid is possible. This article sets out clear, practical steps to obtain HMRC‑compatible receipts from custodial exchanges, how to value Bitcoin gifts on the donation date, what records charities must supply, and common pitfalls to avoid when donating via popular exchanges.
Executive summary: Bitcoin donations via exchanges: tax receipts in 60 seconds
- Donating Bitcoin via an exchange is typically a taxable disposal for the donor for capital gains purposes unless the donation is made in a way that HMRC accepts as a transfer without disposal. Check exchange mechanics and custody.
- Exchanges can provide transaction records, but not all issue formal donation receipts; lenders or charities must issue the receipt acceptable for HMRC. Collect exchange extracts, blockchain evidence and charity confirmation.
- Value the donation in GBP on the transfer timestamp; use a reliable exchange rate source and record the URL and timestamp. This fixes the base cost for CGT.
- UK charities can accept crypto but Gift Aid requires the charity to be a 'qualifying donation' and to meet HMRC conditions; many charities convert to fiat first. Confirm charity policy and registration.
- Use purpose‑built record‑keeping tools or CSV exports to produce HMRC‑ready reports; keep evidence for at least six years. Automate where possible.
Are Bitcoin donations via exchanges taxable disposals?
Donating Bitcoin ordinarily constitutes a disposal under UK tax law because cryptoassets are treated as property by HMRC. When a disposal occurs, capital gains tax (CGT) considerations typically follow. Whether a taxable gain arises depends on the donor's acquisition cost (the pool), the value at disposal and reliefs that may apply.
Key factors determining tax treatment:
- Method of transfer: Direct on‑chain transfers from a donor's private wallet to a charity's wallet differ from transfers initiated by a custodial exchange. Many custodial transfers from pooled wallets or internal ledger moves may be treated as disposals by the donor because the donor ceases to own the units.
- Custodial model: If funds are held in an exchange's pooled custody, the exchange may only record an internal ledger debit when sending to a charity. HMRC expects evidence that the donor gave away the asset rather than sold or exchanged it.
- Charity receipt: The existence of a charity acknowledgement that confirms the gift and the charity's ability to trace receipt strengthens the case for a disposal being a donation rather than a sale.
Practical implication: donors should expect to treat donations via exchanges as disposals for CGT unless clear evidence shows otherwise. For simple cases, treating the transfer as a disposal and reporting the gain (or loss) on the self‑assessment is the conservative approach.
References: HMRC guidance on cryptoassets clarifies that cryptoassets are property and disposals trigger CGT: HMRC: Tax on cryptoassets.
When a donation may not trigger CGT
- Gifts of chattels or qualifying gifts: Rare in crypto; HMRC does not provide a blanket exemption for gifts of crypto to charities. Specific relief may apply in narrow scenarios, but these are exceptional.
- Intra‑exchange donation features: Some exchanges offer a 'donate' button that forwards fiat conversion proceeds to a charity; in that case the initial step is a sale (taxable) and the charity receives fiat. The donor has a disposal (sale) event, not a direct donation of crypto.
How to obtain donation receipts from crypto exchanges
Exchanges vary: some provide downloadable transaction reports showing the outbound transfer; others only offer a ledger entry. A formal tax receipt acceptable to HMRC usually needs: donor name, charity name and registration number (if UK), date/time of transfer, quantity of Bitcoin, GBP valuation at transfer time and a statement that the charity received the funds.
Steps to secure an HMRC‑compatible receipt when using an exchange:
- Check the exchange's donation flow. Some platforms (e.g. Coinbase Commerce, Binance Charity programmes) have explicit donation channels that yield receipts; others do not. If the exchange offers a donation partner, request the formal receipt.
- Export transaction history. Download CSV/PDF transaction history that shows the outbound transfer hash, timestamp and Bitcoin amount. Ensure the export includes the account holder's name and account identifier.
- Obtain charity confirmation. Request an email receipt from the charity containing: charity name, charity registration number (if applicable), date/time, amount of BTC (and conversion if applicable) and a signed statement confirming receipt.
- Collect blockchain evidence. If the transfer was on‑chain, copy the transaction hash and the block explorer URL so HMRC can verify the movement of coins.
- Ask the exchange for a stamped letter. If necessary, request a formal statement from the exchange showing the transfer details. Some exchanges will issue a downloadable statement or letter on request.
Useful links: Charity Commission guidance for charities accepting digital payments: Charity Commission.
Example checklist for a valid donation receipt
- Donor name and address
- Charity name and registration number (or country equivalent)
- Date and time (UTC) of transfer
- Amount of Bitcoin donated and transaction hash
- GBP valuation and source used for valuation
- Signature, email or letterhead from the charity
Valuing Bitcoin gifts for HMRC and capital gains
HMRC requires the value of the cryptocurrency in GBP at the time of disposal to calculate any gain. For donations, that value determines the disposal proceeds or the amount given away (used for record keeping and potential reliefs).
How to produce a robust valuation:
- Use a primary, time‑stamped price source. Examples include the spot price on a major UK or global exchange (Coinbase Pro, Kraken, Bitstamp) at the exact UTC timestamp of the transaction. Save a screenshot or archived page and the URL.
- Record the timestamp to the second. Blockchain transfers and exchange logs provide precise timestamps. The valuation should match that exact moment.
- Document the conversion method. If an exchange converted BTC to GBP prior to sending funds to the charity, record the conversion rate and the transaction IDs.
Example calculation (illustrative): donor acquired 0.5 BTC at a pooled cost of £4,000. On donation date the 0.5 BTC value at 12:34:22 UTC was £12,500. Disposal proceeds for CGT are treated as £12,500; the gain is £8,500 (before allowances). This is an example and is indicative.
Tip: store valuation evidence alongside the exchange CSV and charity receipt. HMRC may request reconciliations.
Can UK charities accept crypto and claim Gift Aid?
Charities registered in England and Wales can accept crypto, but Gift Aid requires the donation to be a gift of money and the charity to be able to reclaim tax on that gift. Most Gift Aid claims require the donation to be in GBP and the donor to complete a Gift Aid declaration.
Practical points:
- Direct crypto donations are not money for Gift Aid purposes unless the charity converts the crypto to GBP immediately and treats the proceeds as a cash gift with a Gift Aid declaration in place.
- Many charities convert crypto to fiat on receipt and then treat the converted amount as the donation for Gift Aid.
- Gift Aid declaration is essential. Donors who wish to enable Gift Aid should confirm the charity's process before donating.
Charities considering crypto donations should consult the Charity Commission: Charity Commission, and seek independent tax or legal advice when integrating crypto into fundraising.
Reliable records are essential. Manual record keeping is possible, but specialised crypto tax and record tools reduce error and create HMRC‑ready outputs. Tools should export CSVs for self‑assessment and compile donation packs including exchange exports, blockchain proofs and charity receipts.
Recommended record items to capture:
- Acquisition dates, amounts and GBP cost for all units (pooled cost basis)
- Disposal date, time, amount donated and GBP valuation source
- Exchange transaction ID and blockchain transaction hash (if applicable)
- Charity acknowledgement with registration number and timestamp
- Screenshots or PDF exports of exchange statements
Common record‑keeping tools (examples, not recommendations):
- Crypto tax platforms that import exchange APIs and produce donation reports (exports should show donation as a disposal)
- Spreadsheet templates that list acquisition pools and compute gains on each disposal
- Accounting packages that can attach evidence files to transactions
A simple CSV export naming convention and folder structure (example):
- /Donations/2026-02-12_BTC_ExchangeName_DonorName.csv
- /Donations/Receipts/2026-02-12_CharityName_receipt.pdf
- /Donations/Evidence/txhash_0xabcd1234.txt
Common pitfalls when donating Bitcoin through exchanges
- Assuming an exchange export equals an HMRC receipt. Many exchanges only show ledger movements and do not issue charity receipts. Always obtain a charity confirmation.
- Not capturing the transaction hash. For on‑chain transfers, missing the transaction hash makes reconciliation harder.
- Donating from pooled/custodial wallets without clarity. Internal exchange ledger moves may complicate proof of disposal; donors should obtain an official exchange statement that ties the debit to a specific transfer.
- Relying on an exchange's fiat conversion without recording the rate. If the exchange sold BTC and donated fiat, record that conversion rate and keep the sale evidence.
- Expecting Gift Aid without confirmation. Gift Aid requires specific conditions; do not assume eligibility unless the charity confirms and records the process.
Table: how different transfer methods affect tax and receipts
| Transfer method |
Typical tax impact |
Receipt and evidence |
| On‑chain transfer from personal wallet |
Disposal for CGT; value = GBP at timestamp |
Blockchain tx hash + charity receipt with BTC amount |
| Exchange internal transfer (ledger move) |
Often treated as disposal; depends on exchange records |
Exchange statement + charity confirmation required |
| Exchange converts to fiat then donates |
Sale event (taxable); donation is fiat for charity |
Exchange sale record + charity fiat receipt + conversion rate |
Donation flow: exchange to charity
🔁 Step 1 → ⚙️ Step 2 → ✅ Step 3
- 🔍 Step 1: Confirm exchange donation feature or obtain transfer details (timestamp, tx hash).
- 📥 Step 2: Charity receives crypto/funds and issues confirmation including charity registration number.
- 🗂️ Step 3: Donor stores exchange export, blockchain proof and charity receipt together for HMRC.
Balance strategic: what is gained and what is risked when donating via exchanges
When donating via an exchange is a strong option (benefits)
- ✅ Convenience: simple user interface and single‑click transfers for many users.
- ✅ Immediate conversion: charities that want fiat can receive proceeds quickly when the exchange converts funds.
- ✅ Integration: some exchanges partner directly with charities and provide donation receipts.
What to watch for (red flags)
- ⚠️ Lack of formal receipts from exchanges. If the exchange cannot produce clear evidence linking the donor to the transfer, HMRC queries become harder to resolve.
- ⚠️ Pooled custody ambiguity. Pooled wallets make tracing specific units difficult.
- ⚠️ Cross‑border charity issues. Donating to charities outside the UK adds complexity for Gift Aid and UK tax reporting.
Dudas rápidas sobre Bitcoin donations via exchanges: tax receipts
How are donations of Bitcoin treated for capital gains tax?
Donations of Bitcoin are generally disposals for CGT. The donor must record the GBP value at the time of transfer and report any gain or loss on self‑assessment. Additional context: exceptions are rare and depend on transfer mechanics.
Why does HMRC need a GBP valuation for a BTC donation?
HMRC requires GBP values to calculate gains and to provide an audit trail. Valuation at the precise timestamp fixes the disposal proceeds and the donor's gain or loss.
What happens if the exchange only shows an internal ledger entry?
An internal ledger entry alone may be insufficient. The donor should secure a formal statement from the exchange and a charity confirmation showing the transfer and amount received.
How can a charity issue a receipt for a BTC donation?
A charity can issue a receipt that lists the BTC amount, the GBP equivalent at the time of receipt, the transaction hash (if applicable) and the charity registration number. If the charity converts to fiat, the receipt should show conversion details.
Which evidence does HMRC typically accept for a crypto donation?
HMRC looks for transaction records (exchange exports), blockchain transaction hashes for on‑chain transfers, charity receipts with registration numbers and timestamped valuation sources.
How long should records be kept for crypto donations?
Records should be retained for at least six years, aligning with HMRC's record‑keeping rules for tax returns and capital gains documentation.
Conclusion: long‑term benefit of proper receipts and records
Clear, time‑stamped documentation of Bitcoin donations via exchanges reduces the risk of HMRC enquiries, simplifies self‑assessment reporting, and helps charities apply any available relief correctly. Well‑maintained records also protect the donor if ownership, value or timing is ever disputed.
Begin your action plan
- Export the exchange transaction report, note the timestamp and copy any transaction hash immediately after donation.
- Request and save a written confirmation from the charity showing the BTC amount, GBP valuation (with source) and charity registration number.
- Store all evidence in a single folder and generate a simple CSV that lists acquisition cost, donation date, donated amount and GBP valuation for self‑assessment submission.
Note: This information is educational and illustrative. For personal tax consequences consult a regulated tax adviser. HMRC guidance on cryptoassets is available at https://www.gov.uk/government/publications/tax-on-cryptoassets.
