UK Tax Authority Updates Its Guidelines for Crypto Taxation
Drishti Bhagat Nov 04, 2019 08:00
HMRC updates its guidelines for crypto – taxation, relating to both individuals and businesses. The new guidelines explicitly state that crypto-currencies are not considered as ‘money.’
Her Majesty’s Revenue and Customs (HMRC), the tax and payments customs authority for the United Kingdom, has updated its guidelines for crypto taxation as they pertain to both individuals and businesses.
The guideline updates were published on Nov. 1, further clarifying HMRC’s stance on how cryptocurrency will be taxed in the UK. It relates to companies planning to buy/sell tokens, mine exchange tokens for additional assets or exchange goods/services for tokens in return; all of which will now be liable to one or more different types of tax.
It is to be noted that the British tax authority has elucidated that it does not consider any established kind of cryptocurrency to be money or currency.
HMRC has also acknowledged that the cryptocurrency industry is fast-paced and hence, it will examine each case on its individual merit and accordingly apply the relevant tax provisions, instead of relying on theoretical implications alone.
This appears to be a stark contrast from the previous notion held by the HMRC, in considering cryptocurrency as a form of gambling.
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