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

 

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