twitter

linkedin

01223 810100

CLIENT LOGIN

SIGN UP FOR NEWS

MENU menu

Close close menu

CKLG BLOG

 

PAST POSTS menu

Close close menu

Category
Search by year

Did you know that your CryptoCurrency is taxable?

14.03.2022

Business

Did you know that your CryptoCurrency is taxable? 

 

There are more than 8,000 cryptocurrencies now in existence, so it is no surprise that many people are dipping their toe into the market and therefore the tax implications are coming to the surface. HMRC has started sending ‘nudge’ letters to taxpayers giving them the opportunity to get their tax affairs in order. 

 

One of the big misconceptions is that crypto is treated as a currency for UK tax purposes and is tax-exempt when using a spread betting account. In fact, HMRC advises that for the most part, crypto should be thought of as an asset. The tax treatment, therefore, tends to follow, with the majority of transactions being subject to Capital Gains Tax

 

Gains may arise on disposals of crypto assets which, just like any other capital asset, HMRC define as: 

 

As always, there are exceptions to the rule; crypto mining or high-frequency trading in crypto may be deemed to be trading income which is subject to Income Tax. Furthermore, we are starting to see more payments to employees in crypto; to the extent that these are employment-related payments are being processed through payroll and subjected to both Income Tax and National Insurance Contributions.  

 

Tax treatment for crypto is nuanced and may depend on many contextual variables; if you think you may have reporting obligations and would like help, please get in touch. 

PAST POSTS