The new HMRC guidance on the tax treatment of cryptoassets for businesses provides some welcome clarification. HMRC confirms its general view that cryptoassets are not a form of currency. Depending on the type of transaction, businesses could face liability for most taxes applicable to business activities. Taxable activities might include buying and selling exchange tokens, exchanging tokens for other assets (including other types of cryptoassets), ‘mining’ and providing goods or services in return for exchange tokens. Much will depend on the usual tax rules applied to the specific facts of cryptoassets. However, there are a still a number of areas where guidance has not been provided, including the treatment of utility tokens and security tokens. Guidance is also more limited on areas such as accounting, VAT and stamp taxes.
If you are not a subscriber, subscribe now to read this content.
The new HMRC guidance on the tax treatment of cryptoassets for businesses provides some welcome clarification. HMRC confirms its general view that cryptoassets are not a form of currency. Depending on the type of transaction, businesses could face liability for most taxes applicable to business activities. Taxable activities might include buying and selling exchange tokens, exchanging tokens for other assets (including other types of cryptoassets), ‘mining’ and providing goods or services in return for exchange tokens. Much will depend on the usual tax rules applied to the specific facts of cryptoassets. However, there are a still a number of areas where guidance has not been provided, including the treatment of utility tokens and security tokens. Guidance is also more limited on areas such as accounting, VAT and stamp taxes.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
