Cryptocurency has been developed with the aim of improving the ability of people/companies to transact digitally with each other. However, this new medium of exchange has been seen by most investors as an opportunity of investment in the hope of realizing gains through investing, trading, yield farming, airdrops or mining.
As the value of Bitcoin and other cryptocurrencies, such as Ethereum, Ripple, Steallar, SushiSwaps, Litecoin etc. increases, individuals and companies may be subject to tax on their trading activities. As long as the cryptocurrency’s remains legal in the UK, it will also have tax implications.
HMRC considers that cryptocurrency activity should be taxed as any other investment. Therefore, depending on the number of transactions and activities involved, any income or gains made relating to cryptocurrency will be subject to income tax, capital gains tax or corporation tax.
How can we help?
As the popularity of cryptocurrency is constantly increasing, our team have ensured that they are fully up to speed on the taxation and accounting of cryptocurrencies. Hence, we are able to provide you with valuable and pro-active advice relating to any tax implications on your cryptocurrency trading activities regardless of whether you are mining, trading, yield farming or you are new to the crypto game.
For further information relating to cryptocurrencies, please contact us.