British tax authorities issued guidelines for crypto business and individuals.The United Kingdom's duty, installments and traditions authority, Her Majesty's Revenue and Customs (HMRC), has refreshed its digital money tax collection rules for organizations and people.On Nov. 1, the U.K. government charge organization, which oversees imposes close by other monetary approaches, discharged expense direction refreshes that further explain its position on how organizations and people engaged with digital money will be exhausted.
The guidelines set out HMRC’s view on cryptocurrency transactions, which taxes apply, how to file tax returns and accounting practices, among others. It also considers the taxation of exchange tokens, while stating that rules for utility or security tokens will be added in the future.
Companies that buy or sell tokens, mine, exchange tokens for other assets or provide goods or services in return for tokens are liable to pay for one or more different types of tax. Those taxes include income tax, corporation tax, capital gains tax, stamp taxes and National Insurance contributions.
The tax authority explicitly stated that it does not consider any of the current types of cryptocurrencies to be money or currency.
HMRC further recognized that the cryptocurrency sector is a fast-moving one and it will therefore look at the facts of each case separately and apply the relevant tax provisions according to what has actually taken place, rather than by relying on theory alone.
HMRC had previously considered cryptocurrency trading to be the same as gambling. However, the latest tax guidance update states that the agency does not consider the buying and selling of cryptocurrencies as such.
NOVEMBER 03, 2019
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