Holders of cryptoassets need to be aware of the tax implications, whether they are trading or mining. Thomas Cattee, head of white-collar crime, and Tim Crook, head of tax, at Gherson Solicitors examines the latest HMRC guidance
Bitcoin is probably the most well-known of cryptoassets, but the industry has come a long way since the first open-source Bitcoin was released in January 2009. The term cryptoassets now encompasses all types of cryptocurrencies and tokens.
An example of these digital assets is a non-fungible token (NFT) used to confirm ownership of something that exists only online. In March 2021, Pablo Rodriguez-Fraile sold a NFT for a 10-second video for $6.6m (£4.8m). He had purchased it just five months earlier for $67,000.
With such huge sums and gains involved in the buying and selling of cryptoassets, and the volatility of the market, how they are taxed is a serious talking point. HMRC has been producing guidance on the topic of cryptotax since 2014, but its most substantial guidance was only published earlier this year.
