Cryptocurrency

22/12/18 07:00 UTC-4

UK Tax Service has released official recommendations for cryptocurrency owners

In the UK, the tax administration has developed cryptocurrency ownership guidelines
In the UK, the tax administration has developed cryptocurrency ownership guidelines

Her Majesty's Revenue and Customs (HMRC) UK "Taxes and Customs" issued a set of guidelines for crypto-investors on how to make tax payments and how they should manage digital assets – as reported by the CCN news agency.

Updated guidelines have been developed to help tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details
owners meet their tax obligations by clarifying some of the uncertainties regarding the tax regime for crypto-assets. According to the report entitled "Cryptoactives for individuals", cryptocurrencies should be viewed as assets rather than money. This view contrasts sharply with those who believe that digital assets can be a normative form of currency.

HMRC said: "The tax regulation of crypto-assets continues to evolve due to the changing nature of the underlying technology and the areas in which crypto-assets are used. Thus, HMRC will consider the facts of each case and apply the relevant tax provisions in accordance with what makes sense (and not with reference to terminology). Our views may change and develop further as the sector develops."

 

UK does not recognize the cryptocurrency money

Now, local media do not provide any information about the obligations of companies and firms based on cryptography, although the authorities have confirmed that such information will soon appear.

The HMRC report explains that the UK government and the country's tax agency do not consider digital assets as a form of money. According to the information of the working group that was entrusted with the investigation of this case – only three types of tokens were confirmed; service tokens, exchange tokens and security tokens.

In the future, the definition of each token for tax compliance purposes will depend on the purpose for which each coin was designed, and not only on its official purpose.

The report also states that individuals will be required to pay income tax (IT) or capital gains tax (CGT), depending on the type of cryptocurrency and transactions based on the cryptocurrency in which they participate. The UK Revenue Service has developed official principles for crypto-coin owners, citing the fact that most countries equate crypto-coins to securities and assets, not money.

Editor: Yuliya Soroka

See also: "The price of Bitcoin crossed the $ 4,000 barrier"

#United Kingdom #cryptocurrency #tax service #principles #laws #taxes

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