11 May 2021
Have you been dabbling in a bit of crypto? Taxes may apply more often than you think.....
In most cases, individuals hold cryptoassets (such as Bitcoin) as a personal investment, usually for capital appreciation in its value or to make purchases. They will be liable to pay Capital Gains Tax when they dispose of their cryptoassets. This includes:
If the taxpayer’s activity is trading, then Income Tax will take priority over CGT and will apply to profits (or losses). Individuals will be liable to pay Income Tax and National Insurance Contributions on cryptoassets which they receive from:
There may also be cases where an individual is running a business which is carrying on a financial trade in cryptoassets and will therefore have taxable trading profits.