British Tax Authority releases crypto guidance for businesses and enterprises

Tuesday 5 November 2019 13:27 CET | News

Her Majesty’s Revenue & Customs (HMRC) has issued guidance for businesses and enterprises for crypto asset exchange tokens following up a year-old promise, according to CoinDesk.

Under the latest guidance, crypto assets, such as Bitcoin, continue to be defined as commodities, not money or currency. Businesses engaged in trading exchange tokens, including selling goods or services for crypto or mining, are liable for tax payments.

The type of tax paid, capital gains tax, corporation tax, income tax, national insurance contributions, stamp taxes or VAT, are at the discrimination of the authority, according to CoinDesk. Most mining activities constitute a taxable event as a form of trade. If mined coins are not traded, they are considered miscellaneous income which carries its own tax burden.

The HMRC says at-home mining is not a taxable event, however.

Guidance for hard forks and airdrops is also provided, although there’s no apparent change from the individual guidance issued in 2018.

Additionally, employees can be paid in crypto assets under the new tax laws, regardless of the authorities’ non-recognition of crypto assets as money. However, employers cannot use crypto assets for pension funds since HMRC does not view crypto assets as money or currency, but as a commodity.
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Keywords: HMRC, crypto asset exchange, tokens, mining, Bitcoin, tax laws, cryptocurrency
Categories: DeFi & Crypto & Web3
Countries: United Kingdom
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DeFi & Crypto & Web3

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