The Knowledge Centre

HMRC have now provided long-awaited rulings on the UK VAT treatment of NFTs” Tax authorities are often slow to catch up with new or quickly moving technologies, which creates uncertainty, particularly for embryonic or developing businesses. One area that fits this description is crypto. Most major tax authorities, including HMRC, have focused on the general […]

Cryptoassets are not currency or money Further, it is highly unlikely that a cryptocurrency would constitute foreign currency certainly for the time being. Someone who is buying and selling cryptoassets, again, is unlikely to be speculating or gambling (in a tax sense, anyway). The default position is likely to be that a transaction involving the […]

The term “fungible asset” is, perhaps, an unfamiliar one. A fungible asset is mutually interchangeable with another identical item. In reality, very little is truly fungible. Whether we are talking about my battered laptop, I’ve made these notes on. The cheese sandwich that I will eat for lunch is non-fungible. The under-used treadmill in the […]

Introduction HMRC have a number of formal Information Notices coming in a variety of different flavours. These may be issued either: following a failure to respond to an initial “formal” enquiry; or may be received by a taxpayer without any such prior notice. Types of Information Notice Information notices generally may be issued in the […]

Introduction For many, cryptocurrency will be more associated with non-compliance than it is for compliance with the tax rules! This is unfortunate. Thankfully, the market has moved on as it has evolved and the majority of people in the industry will be aware of their tax reporting obligations. That said, there will still be those […]

A blockchain may also be referred to as a ‘distributed ledger’. In short, a blockchain is a record or ledger of transactions retained by a network of computers. Each computer has a complete record of all of the transactions (some more recent technologies split the records between different ‘shards’ but the principle remains the same). […]

‘NFT’ stands for ‘non-fungible token’. The original assets (or tokens) on blockchains (like Bitcoin) were ‘fungible’. That means that one is interchangeable with another. To help understand this we can give you an example; if you lend a tenner to a friend, you would not care whether that friend handed back to you the exact […]

Terms used in the crypto space develop as rapidly as the space itself. Further, there are often no strict or universally accepted meanings for all terms. Is there a term you would like to have included – get in touch! 51% Attack Blockchains work on consensus, so if you want to persuade the network that […]

Bitcoin Tax – CGT Bitcoin tax – general For a full guide on the taxation of cryptocurrency, including Bitcoin, in the UK please visit here. Bitcoin tax in the UK In broad terms, those individuals who have disposed of cryptoassets will be taxable to either Capital Gains Tax (CGT) or income tax (IT). Where a company […]