27 October 2021
What is a Cryptoasset?
Services:
International Tax Planning,
Corporate Tax Planning
What is a Cryptoasset?
A Cryptoasset more commonly known as “Cryptocurrency” or simply, just “Crypto” are a type of digital asset which are secured by cryptography meaning they are very difficult to duplicate.
How are they taxed for individuals?
How they are taxed will depend on whether the individual is investing or trading.
Generally HMRC take the view that individuals hold Cryptoassets as a personal investment in order for its value to increase. Individuals will be required to pay Capital Gains Tax when they dispose of their Crypto.
Holders of cryptoassets would be subject to income tax and national insurance if HMRC deemed that they were buying and selling at a level where they were deemed to be trading.
There has been much volatility in the market in recent times leading to some large gains and losses.
It is important to seek Professional tax advice and if you do have potential hefty gains please do get in touch.