How Cryptocurrency is Taxed in the UK: Brief Introduction
How Cryptocurrency is Taxed in the UK? Cryptocurrency, which is in its beginning phases of establishing its reputation, is starting to get recognized by governing bodies around the world. In the United Kingdom, however, cryptocurrency is not recognized as currency or money but is rather accepted as property.
Therefore, just as all property is taxed, the HMRC has declared that crypto is to be taxed as Capital Gains Tax or Income Tax.
Introduction to Crypto
As a brief introduction to Crypto, here is some general information to know after which we will share more in-depth articles about crypto taxation in the UK:
A tax deadline has been announced; if any individual or business has engaged in either buying or selling cryptocurrency between the UK tax year of April 6, 2020, and April 5, 2021, details of these transactions must be declared on their respective 2020-2021 Self-Assessment Tax Return.
In 2020, Coinbase shared data regarding UK customers engaging with cryptocurrency between 2017 and 2019. Therefore, once you have an account with a cryptocurrency-designated service provider in the UK, it is plausible that the HMRC is aware of your presence and the details of your transactions.
Because of the HMRC, the crypto tax will become a serious matter wherein they have announced they will be sending letters to crypto holders over any undeclared gains and will be properly prompted to pay the respective Income Tax and Capital Gains Tax.
Crypto Accountants in the UK
With the government taking a proactive approach in targeting crypto, it is crucial to understand your crypto asset’s work as well as the respective tax needed on them. This is where Crypto Accountants can help you.
To contact us, visit our website at: https://www.cryptoaccountants.live/