Taxation of Cryptoassets
HMRC updated the guidance on the tax treatment of cryptoassets, such as bitcoins, on 19th December 2018.
The paper sets out HMRC’s view – based on the law as it stands at the date of publication – about how individuals who have cryptoassets are taxed. It does not explicitly consider the tax treatment of cryptoassets held for the purposes of a business carried on by an individual.
They state that the cryptoassets sector is fast-moving and developing all the time. The terminology, types of coins, tokens and transactions can vary. The tax treatment of cryptoassets continues to develop due to the evolving nature of the underlying technology and the areas in which cryptoassets are used. As such, they will look at the facts of each case and apply the relevant tax provisions according to what has actually taken place (rather than by reference to terminology). Their views may evolve further as the sector develops.
The updated guidance can be found here: https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals
Related News Articles
Private School VAT FAQ
What has Changed? From 1 January 2025, all supplies of education, vocational training, and board & lodge made by a private school will be subject to VAT at the standard rate (20%). The draft legislation defines a private school as a school/institute that provides full-time education for pupils of compulsory school age (and those up…
UPDATE: Fuel Rates for Company Car Drivers
The reimbursement rates for employees using company cars for business travel have been updated as of 1 September 2024. These Advisory Fuel Rates (AFRs), set by HMRC, are revised every quarter to reflect changes in fuel prices. The AFRs specify the maximum amounts that can be reimbursed to employees for business mileage in a company…
Granting Shares Options to non-employees/Consultants
By nature of their contract for services, consultants are not eligible for any of the approved tax advantaged share option schemes in the same way that employees of a company offering incentives are. Approved share option schemes include: Enterprise Management Incentive Options (EMI scheme) Company Share Option Plan (CSOP) Share Incentive Plan (SIP) Save As…