TAX WORKING GROUP

CryptoUK stands for transparent, fair and forward-thinking crypto tax policy

As the regulatory framework for crypto and digital assets finally begins to gather momentum, the requirement to educate and inform HMRC, HMT, the TSC & the OECD of the technical aspects of the taxation of digital assets is ever present.  This working group (and Sub-Groups) has been formed to pool resources of industry representatives drawn from law, tax and legal to create a clear mandate of how we would like to engage with these authorities to provide an understanding and awareness of the landscape for the taxation of digital assets in the UK.

Sub-Group 1: DAOs

Sub-Group 2: DeFi

Sub-Group 3: NFTs

It was unanimously agreed by CryptoUK members in a survey that prohibitive restrictions and unnecessary, over-complicated guidelines and requirements deter vast numbers of entrepreneurial organisations and individuals from setting up their business as a UK entity.  Instead, they turn to crypto friendly jurisdictions which are entirely transparent and operate within their own guidelines for tax and governance. Of the top 10 exchanges ranked by liquidity by Cryptowatch, not one is domiciled in the UK. This has forced the majority of cryptoasset investing to go offshore, representing a huge loss to the UK in terms of jobs and future corporation tax revenues.

This runs incongruously to the will and intention of the UK Government to see the UK leading the sector as the global crypto hub.

In addition to responding to consultations and calls for evidence as a trade association collective, we aim to provide clarification of and engage with authorities on:

• Crypto Tax Regulations
  What are the norms and laws behind cryptocurrency taxation and what are the premises for it? What generates capital gains taxes? What generates income taxes?
• When Is Cryptocurrency Taxed?
  The timeframes and timelines for cryptocurrency taxation and the activities that generate taxable events
• Best Practices in Crypto
  Rules of Thumb for good crypto practices as well as best practices when dealing with several wallets and exchanges
• Tools for Cryptocurrency Taxation
  What is important to know about cryptocurrency tax tools? What things to consider and how to choose the one that makes the most sense for you?

Please click here to express your interest in joining this group.