Her Majesty’s Revenue and Customs UK (HMRC) have published today a policy paper on the tax treatment of cryptoassets for individuals in the UK. As expected, cryptoassets are viewed to be taxable: trades and other disposals should have capital gains taxed. This includes crypto-to-crypto trades.
Key amongst the guidance is the following statement to clarify the situation for individuals:
Individuals will be liable to pay Income Tax and National Insurance contributions on cryptoassets which they receive from:
– their employer as a form of non-cash paymentHMRC: Cryptoassets for individuals
– mining, transaction confirmation or airdrops
While the document states that policy complicated cases and scenarios will be further defined in due course, the guidance already covers “exchange tokens”, such as Bitcoin (BTC). It covers situations such as trades, losing private keys, and mining income. Smart contracts and other tokens are not yet covered, but should follow a similar approach.
Furthermore, digital assets do not qualify towards pensions as not considered currency/fiat.
bitfudge have long been expecting HMRC to tax digital assets, as it is in line with how securities and other assets are taxable.
What do you think about HMRC’s policy? Should digital assets be taxed as capital gains? Let us know in the comments below.