The majority of people will have to pay Capital Gains Tax on their profits from cryptocurrency trading.
Calculating any profit from cryptoassets can be difficult since many cryptoassets are traded on exchanges that do not use pound sterling and it is common for one cryptoasset to be exchanged for another. This can be complicated further by the volatility of the crypto market and the valuation of your cryptoassets upon disposal.
In rare cases, an individual will be considered to be carrying on a business by trading cryptoassets and will be required to pay Income Tax and National Insurance on their cryptoassets, the most common of which are:
- Mining activities
- Transaction Confirmation
- Airdrops
- Yield farming
There is no denying it’s a complex and sometimes confusing system for cryptoasset taxation. But fear not, we are here to help! If you have any questions or wanted to book in for a consultation with one of our specialist Crypto accountancy team, then CLICK HERE.
