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Taxes on cryptocurrency transactions may apply to UK residents who trade or invest in the cryptocurrency eco-system. This is a series of blog pieces will help you understand cryptocurrency taxation in a thorough but concise manner. Explore our UK Cryptocurrency Taxation Guide.
The Taxation of Crypto Assets
Are you a seasoned cryptocurrency investor, a curious newbie, or are you just drawn to this market’s potential?
Regardless of your position, before delving further, you must comprehend how HMRC taxes cryptocurrencies.
Should you lack the time to peruse HMRC’s whole guideline on bitcoin assets, available: https://www.gov.uk/government/collections/cryptoassets
Our all-inclusive blog pieces will enlighten you on all aspects of UK cryptocurrency taxation.
Now let’s get going…
Yes you can be taxed, for the majority of investors, nevertheless, there are some exceptions.
Major financial institutions do not consider cryptocurrency assets to be money or currency. Rather, they are taxed and handled like shares for taxation purposes.
The vast array of taxable transactions, which includes more complicated operations like hard forks, airdrops, staking, and more, should be known to cryptocurrency traders and investors.
With the ongoing evolution of the cryptocurrency market, the tax environment has grown more complicated.
The emergence of gaming and gambling systems akin to cryptocurrencies, together with hybrid tokens intended for certain uses, has further revolutionised the asset class.
You can be eligible for more advantageous tax treatment if you are not UK domiciled or not UK tax resident.
In our next Blog piece, we will explore when you will be liable to pay tax on your crypto assets.
Our professionals at Numerica Box will walk you through the tax ramifications of your crypto assets in the UK. Contact us for a no obligation consultation by phone or email
Email: hello@numericabox.com
Phone: 0161 8833 573