HMRC updates its cryptocurrency guidelines
|- The tax authority in the United Kingdom has updated its crypto tax guidelines.
- They made it clear that crypto is not money, but taxes are applicable.
The United Kingdom’s tax, payments and customs authority, HMRC, recently updated its guidelines on cryptocurrency taxation for businesses and individuals. On Nov. 1, the U.K. government tax agency, which manages taxes alongside other financial policies, released tax guidance updates that further clarify its stance on how businesses and individuals involved with cryptocurrency will be taxed.
The guidelines that have been drawn up by the tax authority, covers their view on cryptocurrency transactions, which taxes apply, how to file tax returns and accounting practices, among others.
Exchange tokens have been considered for taxation, stating that rules for utility or security tokens will be added in the future. They detailed that companies that buy or sell tokens, mine, exchange tokens for other assets or provide goods or services in return for tokens are liable to pay for one or more different types of tax.
Additionally, those taxes include; income tax, corporation tax, capital gains tax, stamp taxes and National Insurance contributions. The tax authority stated that it does not consider any of the current types of cryptocurrencies to be money or currency.
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