How are your Cryptoassets taxed?

The majority of people will have to pay Capital Gains Tax on their profits from cryptocurrency trading.

Calculating any profit from crypto assets can be difficult since many crypto assets are traded on exchanges that do not use pound sterling and it is common for one crypto asset to be exchanged for another. This can be complicated further by the volatility of the crypto market and the valuation of your crypto assets upon disposal.

In rare cases, an individual will be considered to be carrying on a business by trading crypto assets and will be required to pay Income Tax and National Insurance on their crypto assets, 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 book now.

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