Tax on cryptocurrency

HMRC has published internal manuals on cryptoassets taxation on 6th April 2021 detailing appropriate tax treatment as well as guidance for people holding cryptoassets regarding record keeping and liabilities.

Companies or businesses involved in cryptocurrency activities (buying or selling, exchanging for other assets or cryptoassets, ‘mining’, providing goods or services in exchange for cryptocurrency) are obliged to pay tax on them.

Depending on the nature of cryptocurrency use within the business, appropriate types of tax will be due, probably one or more of the following:

  • Capital Gains Tax (CGT)
  • Corporation Tax (CT)
  • Corporation Tax on Chargeable Gains (CTCG)
  • Income Tax (IT)
  • National Insurance Contributions
  • Stamp Taxes
  • VAT

More information can be found on HMRC’s Cryptoassets Manual