HMRC has updated its crypto assets taxation guidance by consolidating the ‘tax for business’ and ‘tax for individuals’ guidance into a new “Cryptoassets” manual. HMRC’s guidance is restricted to the use of exchange tokens (typically cryptocurrencies).
HMRC’s approach to taxing cryptoassets is based on its 2018 paper on the subject. Their position in broad summary is that cryptoassets are not money or currency, but instead should be treated for tax purposes in much the same way as other assets. For individuals income tax would typically apply to trading in such assets and capital gains tax would apply where cryptoassets held as investments and are disposed of. More complex areas (such as cryptocurrency mining) are also addressed. A section on compliance is withheld from the public.
If you have any questions, please contact Laura Clatworthy at laura.clatworthy@rosenblatt.co.uk.
