Tax Legislation For Crypto In the UK
On December 19th, United Kingdom Government released detailed tax advice for cryptocurrency holders. The publication is backed by very a long consultation time with crypto experts.
The UK has always been very conservative about cryptocurrency and blockchain technology. Now, we may be witnessing the change of course. A week ago, we reported the United Kingdom could open for the possibility of tax payments in Bitcoin.
Advice for crypto holders
The new policy release is called “Cryptoassets for individuals”. It explains tax obligations for private investors who buy, sell, get paid in and even lose cryptocurrency. Tax collection agency HM Revenue & Customs (HMRC) has endorsed that tax advice.
The reason for creating that tax legislation is pointed out in the statement:
“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.”
From the release, we find out that individuals will be liable to pay either Capital Gains Tax (CGT) or Income Tax (IT) depending on the type of cryptocurrency transactions they are involved in.
The paper only reveals obligations towards individual cryptocurrency holders. Authorities say that similar document for business’ obligations will be released later.
Image by pxl.store / shutterstock.com
If you want to comment this article, visit our Blockchain24.co forum!
The blockchain24.co site shall not be held responsible for any consequences resulting from the use of data contained in the pages of the site.