Mark Pearce (Gateley Legal) examines the different approaches HMRC, STEP and the UK courts are taking in respect of the taxation of cryptocurrencies.
While the question of whether or not cryptocurrencies are an asset appears to have at least in part been settled there remains great uncertainty as to how the UK should tax profits from investing in cryptocurrencies. Such uncertainty is causing investors and tax professionals to adopt increasingly disparate approaches to reporting profits on cryptocurrencies.
HMRC has been using its extensive information gathering powers to obtain details of holders of cryptocurrencies through the cryptocurrency exchanges. For example Coinbase one of the best known exchange platforms has confirmed that it has provided details of all UK resident taxpayers who in 2019/20 entered into cryptocurrency transactions worth more than £5 000. HMRC has now started to send out ‘nudge’ letters to...
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Mark Pearce (Gateley Legal) examines the different approaches HMRC, STEP and the UK courts are taking in respect of the taxation of cryptocurrencies.
While the question of whether or not cryptocurrencies are an asset appears to have at least in part been settled there remains great uncertainty as to how the UK should tax profits from investing in cryptocurrencies. Such uncertainty is causing investors and tax professionals to adopt increasingly disparate approaches to reporting profits on cryptocurrencies.
HMRC has been using its extensive information gathering powers to obtain details of holders of cryptocurrencies through the cryptocurrency exchanges. For example Coinbase one of the best known exchange platforms has confirmed that it has provided details of all UK resident taxpayers who in 2019/20 entered into cryptocurrency transactions worth more than £5 000. HMRC has now started to send out ‘nudge’ letters to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
