Document On Crypto Investor Taxes Is Presented In Britain
The UK tax agency has published a document on the government website in which it describes in detail its vision of crypto assets and the taxation procedure for crypto owners.
Her Majesty's Revenue and Customs (HMRC), responsible for collecting taxes and other aspects related to replenishing the country's budget, explains in its report how to tax individuals who own cryptocurrencies but does not mention anything about taxes related to companies that are token issuers.
The report follows the general opinion prevailing in the country's government, which considers digital assets property, not money. In general, the authors of the document confirm the position previously stated in the report of the Cryptoasset Taskforce (CATF).
HMRC sees tokens circulating on exchanges, such as bitcoin, in the field of taxation and does not yet consider utility tokens or security tokens. For these categories, a completely different tax regime will be needed.
Investors who buy tokens and hope that their value will increase will pay income tax, and individuals who receive tokens in the form of wages or through mining will have to pay income tax and national insurance premiums.
The document indicates in which cases the assets of citizens can be classified as securities and gives examples of such cases. It is worth noting that HMRC will not equate crypto assets trading to gambling.
As previously reported, the UK regulators increased attention to the crypto industry on the background of the crypto market downturn.