Not only will taxpayers have to declare when they have sold tokens for a profit, but also when assets are exchanged for an alternative crypto currency, and tokens are used to purchase goods and services, even when they have been given away.

In future, self assessment tax return forms are going to include a dedicated area for reporting crypto gains, HMRC confirmed, while it has released a YouTube video explaining tax liability.

So self assessment tax returns will have to include the type of token, the date each has been bought or gifted, the number of tokens and their value in pounds.