March 29, 2022
by  Rubi Shan

Do I have to pay Tax on my Crypto assets?

Crypto assets have become current hot topic recently and is considered as one of the best investment options available in the market despite the lack of regulation and huge risk factor. Not to mention the scams that occur in the crypto world. Crypto assets take many forms and you may know them as cryptocurrencies such as Bitcoin and Ethereum.

This blog is not intended to discuss the various forms of Crypto Assets, we will leave that to those who understand that.  As an accountant and tax advisor, we would like to discuss the tax implements on crypto trading.

Majority of crypto traders assume the gains from crypto are not taxable. Unfortunately, this is incorrect. Crypto trading income is definitely taxable. The real question is which tax regime does your crypto trading fall under. There are two main taxes related to Crypto trading and they are Capital Gains Tax (CGT) and Income Tax.

Back in 2019, HMRC requested a few Crypto exchanges to provide them with client information involved in Crypto trading. HMRC are becoming more vigilant and getting in touch in more Crypto traders to collect the taxes due in this new and booming sector.

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