As cryptoassets become more mainstream, understanding how they are taxed has never been more important.
Whether you’re mining, trading or investing, HMRC expects you to declare your income and gains correctly and the rules are evolving fast.
Our award-winning tax team helps individuals and businesses across Bath, Bristol, London, Taunton and Yeovil stay compliant while making the most of available reliefs and allowances.
Understanding how crypto is taxed
The way your cryptoassets are taxed depends on how you earn from them. We’ll help you determine your position and manage your reporting obligations accordingly:
- Investors – Most casual or part-time investors are subject to Capital Gains Tax on profits realised from selling cryptoassets like Bitcoin or Ethereum
- Miners – Income from mining activity is treated under the Income Tax system, based on the value of the assets created
- Traders – Those trading regularly or professionally are usually taxed on profits as trading income under Income Tax rules
Our specialists will help you calculate your liabilities accurately, identify opportunities to reduce your tax exposure and ensure your crypto activities are disclosed correctly through Self Assessment.
Staying compliant in a changing landscape
HMRC is increasingly focused on cryptoassets. Thousands of ‘nudge letters’ have been issued to investors, traders and miners to encourage full disclosure and penalties for errors, particularly involving offshore exchanges, can be severe.
We’ll guide you through the process of reporting income and gains, making necessary disclosures and keeping your tax affairs up to date.
We want to help you stay compliant, avoid costly mistakes and understand how your digital activities affect your wider tax position.
