Crypto Tax Guidance
As you may be aware HMRC has issued guidance for the consumer and the corporate. Below is the link to the document which will help understand if you have a tax liability or not.
This was updated on 3rd November 2022. The original guidance for individuals and corporates has been assimilated into one manual. Additional guidance includes interest income and staking.
Some major highlights are as follows
- Cryptoassets are considered property for the purpose of taxation
- A capital gains tax (CGT) liability may become due if a gain is made on disposal
- The CGT threshold for UK tax payers is £12,300 per tax year, as at 6 Apr 2022
- Crypto to crypto is a taxable event
- Airdrops and forks are mentioned in the guidance
- Much like shares cryptoassets can be pooled
- Interest earned on crypto is taxable as “misc income”
- Additional DeFi guidance to follow