Calls for greater clarity on taxation of cryptoassets

HMRC has published its Cryptoassets Manual explaining its tax treatment of cryptocurrency derived from existing policy papers published in December 2018 and November 2019.

The manual which is divided into three sections for individuals businesses and compliance aims to help HMRC staff taxpayers and their professional advisers in understanding HMRC’s interpretation of the law as it relates to cryptoassets.

The manual states that most individuals hold cryptoassets as a personal investment and they will be liable to pay capital gains tax when they dispose of them. They will also have to pay income tax and National Insurance contributions on cryptoassets they receive from their employer - as a form of non-cash payment for example. In some cases an individual may be running a business which is carrying on a financial trade in cryptoassets and they will have taxable trading...