The British government has updated the rules for taxing cryptocurrencies, adding special conditions for crypto-companies. The government also stressed that it does not consider Bitcoin and other digital tokens as money.
Cryptocurrency Rules Update
The UK Tax Agency, HMRC (HM Tax and Customs) updated the November 1 series of rules for individuals related to crypto.
Now, firms will be required to declare cryptocurrency related business activities in the tax returns of their companies and will be required to pay taxes for their actions with cryptocurrency:
- Income tax
- National insurance premiums
Also in the document, the tax authority adds that it does not consider Bitcoin and other cryptocurrencies as money, “stocks or marketable securities”.
The tax authority also requires that companies make their own calculations about the value of crypto-transactions in pounds sterling and include an explanation of the methodology they use for these calculations.
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- The tax authority added that new orders for crypto will be issued soon.