We offer a range of high quality accounting, financial and business services in and around Milton Keynes.

HMRC sets out cryptoasset guidance for businesses

06 Nov 2019

HMRC has issued guidance on the tax treatment of cryptoassets in order to clarify the rules for businesses.

The UK tax authority has stressed that it does not consider cryptocurrencies to be either currency, stock or marketable securities. This means that any corporation tax legislation, which relates solely to currency, does not apply to cryptoassets.

However, the guidance makes clear that if a business is carrying out activities that involve exchange tokens, they are liable to pay tax on them. This would include activities such as buying and selling exchange tokens; exchanging tokens for other assets or cryptoassets; 'mining' assets; and providing goods or services in return for exchange tokens.

HMRC notes that the crypto sector is fast developing, and the terminology, types of coins, tokens and transactions can vary. It says it will look at the facts of each case and apply the relevant tax provisions accordingly.

HMRC also requires businesses to keep records of cryptocurrency transactions in pounds sterling, and to keep records of the valuation methodology for these transactions. Firms are expected to record the amount spent on each type of exchange token. 

Late last year, HMRC published cryptocurrency taxation guidance for individuals, clarifying several taxation issues related to airdrops, forks and mining.

Register

Why not register to receive our monthly newswire? This is packed full of essential business news and handy tax tips to help save you money.

Learn more

Tax Calendar

Our handy tax calendar provides an overview of the key tax dates for your diary.

Learn more

Calculators

B2B’s interactive tax calculators can be used to calculate VAT due, the taxable benefits on your company car and how much your savings are worth.

Learn more

Home | About us | Contact us | Logon | Register | Accessibility | Disclaimer | Help | Site map |

© 2019 B2B Business Advisors Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Chartered Tax Adviser

Registered in England, Company Registration number – 7906656. Registered Office – 58b High Street, Stony Stratford, Milton Keynes, MK11 1AQ. Registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry out audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.