In most cases, individuals hold cryptoassets as a personal investment, either for capital appreciation or to make particular purchases. HMRC's cryptoasset manual indicates that they will be liable to pay Capital Gains Tax when they dispose of cryptoassets (at a gain).
HMRC considers that individuals will be liable to pay Income Tax and National Insurance on cryptoassets which they receive from:
- their employer, as a form of non-cash payment; and
- mining, transaction confirmation or airdrops.
Much less frequently, an individual may run a business which is carrying on a financial trade in cryptoassets - in such circumstances they will have a trade, and taxable trading profits (or indeed allowable losses, if the business is loss-making). Those profits would be taxed under the Income Tax rules.
If you have invested in, or actively traded, cryptoassets (including cryptocurrency) then we can help you complete your Self Assessment return and pay the correct Income / Capital Gains Tax. Contact us today for assistance.