- Two million UK adults are believed to own some form of cryptoasset
- The average holding for each investor is growing year on year
- The number of cryptocurrency users in the UK has surged by 103% since the beginning of 2018
Are you a miner, a trader, an investor, or a company with an intangible cryptoassets holding?
How you derive your income from cryptoassets will significantly affect how you are taxed and the size of a potential bill.
You may be surprised to learn that there is currently no specific UK tax legislation exclusively designed to deal with cryptocurrency.
Instead, any tax liabilities depend upon the way the profit was gained and the circumstances of the business or individual.
In practice, this means that any purchase or sale using cryptocurrency – or an acquisition of cryptocurrency as an investment – could result in liability for Capital Gains Tax, Income Tax or Inheritance Tax.
Most investors will face tax on the gains that they make from their investments each year, while miners or traders may have to pay Income Tax instead, depending on their actions in a given tax year.
If you are involved with the cryptoasset markets, whether a part-time amateur investor or a long-standing crypto trader, you must not only report your income or gains correctly via self-assessment but also pay the right amount of tax.
No one wants to pay too much tax, so we can help you calculate how much you owe and offer advice on reducing your liabilities.
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