“We help you report your capital gains (or losses) to HMRC effectively and efficiently. All whilst ensuring you are 100% compliant”
Bharat Bhandari
Cryptocurrency Tax Advice
Cryptocurrency Accountants and Tax Advisors
In recent years, cryptocurrency trading and investments have continuously gained traction. However, people have not understood enough how the government taxes profits from crypto investments. The truth is that many crypto investors think that they do not need to pay taxes on crypto profits, but that is not true.
HMRC wants cryptocurrency traders to pay the right UK tax amount for their crypto assets and profits. So, you must know the tax obligations attached to your crypto investments in the UK. And one way to do that is to seek professional advice from a crypto tax advisor or accountant.
Help for Individual Crypto Investors
We have a passionate team of members knowledgeable in blockchain and cryptocurrency to help you understand UK legislation and the tax landscape.
We will ensure that you pay the right amount of tax using our robust tax-efficient structure. Our team will ensure that your matters are updated no matter the kind of crypto trading or investing you are involved in.
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How does the UK tax Cryptocurrency and Cryptoassets?
The major problem with the crypto tax in the UK is that it has no specific tax legislation. So, crypto profits in the UK are taxed in various ways based on the taxpayer’s circumstances and actions.
When it comes to holding, selling, and buying cryptocurrencies, you must consider Capital gains, inheritance, and income taxes.
What is meant by Cryptocurrency and Capital Gains Tax?
Investment activities based on the involved value and frequency are buying and selling cryptocurrencies. So, the UK government collects capital tax gains on people’s profits from these investment activities. These taxes have exemptions yearly. However, investors must pay the taxes if they exceed the annual exemptions.
When Does a Crypto Asset Become Liable?
Crypto assets are not only liable to capital gain taxes when you sell them for money. When you exchange crypto assets, for example, from Bitcoin to Ether, gift them to someone, or pay for products with them, you will pay capital gain taxes.
There are usually complexities that come with calculating these things, especially when you have other assets you want to dispose of in that tax year. Our crypto tax team can assist you with accurately preparing the tax returns while calculating the gains. Also, we will effectively structure the payment in a tax-efficient manner.
Glossary of terms
Cryptocurrency and Income Tax
An asset of value becomes liable to income tax when people or firms meet some criteria—for example, employers’ remuneration, crypto trading, airdrops, and mining.
Trading
HMRC considers crypto trading as a business, so it attracts income taxes. You need a tax accountant to advise you as a crypto trader to avoid the complications of this income tax.
Mining
Mining can also be classified as crypto trading based on your frequency and reward value. So, at this point, it becomes liable to income tax. Our team can help you bypass the complication of calculating mining income tax. Also, the same applies to holding crypto assets and disposing of them later.
Airdrops
Airdrops sent directly to wallets do not attract income tax. However, when you want to exchange the airdropped crypto assets, it will be liable to income tax. You will need professional advice to efficiently pay this crypto asset income tax.
Crypto Assets and Inheritance Tax
Crypto assets are similar to properties for inheritance. So, they attract inheritance taxes. Hence you will need advice for practical tax payment affairs like you will need for other properties.
Staking
If you are staking crypto assets, the value of the assets in Pounds Sterling at the time of staking will be liable to miscellaneous income tax. If you decide to dispose of the profits from your stakes, you will need to pay Capital Gains Tax.
NFTs (Non-fungible Tokens)
Our team can help you understand the complexities of NFTs taxes. Also, we will help you with practical strategies that will make your affairs tax efficient. It will ensure you have enough Pound Sterling to take care of your tax obligations in the UK.
Altcoins
Altcoins are generally defined as all cryptocurrencies other than Bitcoin (BTC). However, some people consider altcoins to be all cryptocurrencies other than Bitcoin and Ethereum (ETH) because most cryptocurrencies are forked from one of the two.
Bitcoin Accountant
Tel: 0161 835 4141 | Email: [email protected]
Registered Office: Unit 3, Crown Passages, Hale, Altrincham WA15 9GN | Company registered in England and Wales No. 14442739.