Case: UK tax residence and its impact on the taxation of Cryptoassets

Introduction

The UK tax treatment of Crypto income is a relatively new and complex area.  

The issue

Our client wanted to know how a potential move overseas would impact his UK taxable income and assets. Specifically, our client needed to know the impact that moving abroad would have on any DAO tokens, which are received as part of his self-employment.

How we solved it

We assisted our client with providing personalised advice in relation to their UK tax residence status and the actions required to be considered a non-UK tax resident, to benefit from advantageous tax treatment. The client was previously unsure of what would be required to lose his UK tax residence status and we were able to help apply the complex rules to his circumstances.

The Outcome

We clearly set out the steps our client needs to take to be considered a non-UK tax resident and provided calculations to show the impact that this would have on any DAO tokens he receives.

Next Steps

Our expert team of tax advisers are here to support you with a range of tax services in relation to your cryptocurrency activity.

Whether you are just getting started or have been investing in cryptocurrency for several years, our team of tax specialists can provide bespoke advice to support you to achieve your objectives in a tax-efficient manner. Please do get in touch.