UK Publishes New Cryptocurrency Guide

HM Revenue and Customs (HMRC) has published the final guide to taxing cryptocurrencies and other digital assets. If you plan to register a crypto company in the United Kingdom, you should definitely familiarize yourself with this document. Let us briefly consider the main points.

So, in the guide by HMRC, cryptocurrencies refer neither to currencies nor to money as such. The agency considers them assets of a different format, therefore, the features of taxation of fiat assets cannot be applied to cryptocurrencies. HMRC will apply the same regulatory rules for cryptocurrencies as for intangible assets.

The UK claims income tax on the sale of digital assets. In the Guide, the profit from such financial transactions refers to the total profit of the organization. As for the value-added tax when conducting transactions on the exchange of fiat money for crypto assets, this tax does not have to be paid. If an employee of the company receives a salary in cryptocurrency, it is necessary to pay income tax and a contribution to the insurance fund.

Law&Trust offers services to individuals and legal entities who intend to open a cryptocurrency company in the UK. Our lawyers have already familiarized themselves with all the provisions of the Guide, and are ready to provide all the necessary services. We will help to register a company, choose a tax system and pay taxes.