Cryptocurrency is the latest trend that many business owners need to become familiar with.
Cryptocurrency has become the latest financial and accounting trend across the globe in recent years.
It’s going to grow in popularity fairly fast, so the chances are you will need to have an understanding of it.
The current regulations that the HMRC have set in place for the UK regarding cryptocurrency is that an individual will be liable to pay Capital Gains Tax (CGT) when they dispose of any crypto assets they may have.
HMRC allow every UK tax payer a Capital Gains Allowance of £6,000 (dropping to £3,000 in April 2024).
This means you will only have to pay tax on any capital gains you have over the allowance. The tax you pay will then be determined by your earnings and the income band you fall in (much like income tax).
Is buying and selling crypto assets the same as gambling?
HMRC doesn’t consider the buying and selling of cryptoassets to be the same as gambling. The term ‘gambling’ is not defined in the Income Tax or Corporation Tax Acts, or in the Taxation of Chargeable Gains Act 1992.
Cryptocurrency has become the latest financial and accounting trend across the globe in recent years. It’s going to grow in popularity fairly fast, so the chances are you will need to have an understanding of it.
As with anything new, there are many new technical terms associated with cryptocurrency that can be quite difficult to understand at first.
We have put together a jargon buster for you to refer to here.