Chartered Accountants

London +44 (0)20 7710 5300
Reading +44 118 214 0556
Dublin +353 (0)1 568 6789
info@carbonaccountancy.co.uk

Carbon Accountancy

80–83 Long Lane
London EC1A 9ET

Reading Enterprise Centre
RG6 6BU

Tax services

Taxation can be a minefield for many clients. We are able to guide you through this area in a way that is easy to understand.

Tax services

We process your data for HMRC and also make recommendations with regards to disclosures of your cryptocurrency dealings when completing Tax Returns.

In brief

bitcoing tax uk, cryptocurrency tax uk, cryptoassets tax uk

Get in touch

To discuss this service further –
+44 (0)20 7710 5300
or email us

Cryptocurrency, Cryptoassets, Bitcoins Tax Advice UK

Cryptoassets are a relatively new type of asset that have become more prevalent in recent years. There is a wide range of forms and different uses. we are taking on cryptocurrency tax

We are happy to advise clients in this area, as cryptocurrencies like Bitcoin are becoming increasingly popular as investments. Despite this, people are often unsure about HMRC implications and it is always important to have an understanding of tax before making such investments.

If you already hold or are thinking about buying Bitcoin, Ethereum, Litecoins, Ripple, Monero, Dash, Zcash, etc. (all types of cryptocurrencies) and need advice and help with the taxation treatment, we can help.

We process your data for HMRC and also make recommendations with regards to disclosures of your cryptocurrency dealings when completing Tax Returns.

HMRC’s view varies depending on whether cryptocurrencies (cryptoassets) are held by an individual or a business, based on the law as it stands.

The cryptoassets sector is fast-moving and developing all the time. The terminology, types of coins, tokens and transactions can vary. The tax treatment of cryptoassets continues to develop due to the evolving nature of the underlying technology and the areas in which cryptoassets are used.

As such, HMRC will look at the facts of each case and apply the relevant tax provisions according to what has actually taken place (rather than by reference to terminology). Their views will evolve further as the sector develops, so it is important to take professional advice when it comes to potential tax liabilities and disclosure.

Depending on your specific activity (mining, investing, arbitraging, etc.) you may have to pay taxation at income tax rates, and/or capital gains tax. It is also possible for the transaction to potentially qualify as being exempt from taxation altogether. VAT may also need to be considered depending if on whether you are deemed to be trading as a business. Which cryptocurrency activities you are engaging in will affect the advice you need and the tax structure you may want to consider.

Keeping good records of the cryptocurrency transactions is very important and we can advise on what data you should keep..

Capital Gains Tax may apply if:

  • Your gains are above the Capital Gains Annual Exemption threshoold
  • The sum of your total proceeds is higher than 4 x the Capital Gains Annual Exemption.

Just get in touch and we’ll be happy to answer your queries regarding the cryptocurrency market and taxes.

More info can be found here https://www.gov.uk/government/publications/tax-on-cryptoassets

Related information

HMRC Enquiries

Planning & Advice

Tax checking service

Tax services