Sam Inkersole outlines the taxation of cryptocurrencies for individuals and companies.
With HMRC converting their cryptocurrency guidance into a new manual, aptly named CRYPTO, this article gives an overview of how cryptocurrencies are taxed and when taxable events occur for both individuals and corporates.
What are cryptocurrencies?
Cryptocurrencies, otherwise known as cryptos or tokens, are digital assets which are secured by cryptography. They are held in wallets which can be online, on a phone, a computer or a USB type device.
HMRC recognises four distinct types of crypto:
- Exchange tokens – used as a means of payment or investment (e.g. Bitcoin).
- Utility tokens – allow the holder to access specific goods or services on a platform (i.e. Filecoin).
