Do You Have To Pay Tax On Cryptocurrency In The UK?

Can the people in the crypto space, especially in The United Kingdom, avoid paying taxes while buying, selling, and trading cryptocurrencies?

Do You Have To Pay Tax On Cryptocurrency In The UK?
Do You Have To Pay Tax On Cryptocurrency In The UK?

Taxation In The United Kingdom: A Recap

  • According to Her Majesty’s Revenue and Customs (the HMRC), one must fill out tax on all Capital Gains and profits on assets.
  • The HMRC considers crypto to be a digital asset. As such, when you make a profit through selling it, you must pay a tax on it.
  • All citizens receive a £12,300.00 tax-free allowance. You do not pay tax on cryptocurrency profits under this amount.
  • In general, you must pay tax when a taxable event or “disposal” activity occurs. For example, you sell your Bitcoin for fiat currency or swap it for different crypto on an exchange.

The UK Gets Serious With Crypto Taxes

HMRC Regulations

Mining

Forks

Gifting

Losses

Reporting Your Crypto Assets

Final Thoughts

What do you think about having taxes while buying, selling, and trading cryptocurrencies? Is it just fair, or should the crypto space be excluded?

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