Crypto currencies are increasingly popular, and it's important to get the details right.
It is becoming more and more common to invest in crypto currencies, and staying informed about the tax ramifications is critical. STS Europe wants to make sure that all individuals know the tax implications of these investments.
HMRC has released updated guidance on the taxation of these digital exchange tokens due to their growing popularity. This includes when and where each type of tax is liable.
The amount of tax payable on crypto currencies depends on a number of factors.
These factors include the nature, frequency, and level of organisation of trades. Factors which determine whether Income Tax or Capital Gains Tax is due.
Individuals will be required to register for self-assessment and complete a self-assessment tax return, wherever tax is due. Most people investing in crypto currencies are new to the world of investing. Additionally, they are often submitting their first self-assessment. With potential penalties for incorrect returns, it’s even more crucial that your calculation is accurate.
HMRC are actively reviewing investments into crypto currencies at the moment, ensuring that the correct amount of tax is paid. As tax experts, STS Europe can help to educate you on the UK tax implications of investing in these assets.
HMRC state that the vast majority of individuals holding crypto assets will be liable to pay Capital Gains Tax when they dispose of them. There are some scenarios however where individuals will be liable to Income Tax and National Insurance contributions.
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