Q&A: HMRC’s approach to the taxation of cryptoassets

The digital asset market has gained significant media attention in recent years. The rise and fall of the value of digital assets losses arising from fraud and the collapse of big names has attracted widespread attention from the mainstream media and from HMRC.

What is the issue?

Individuals and companies are making and receiving payments in digital assets as well as investing in cryptoassets cyptocurrency and virtual currencies.

Some companies have rewarded staff with digital assets in place of traditional incentives. The non-fungible token market has resulted in many organisations and individuals acquiring and selling tokens that represent digital media. 

These situations while novel to many of us give rise to potential tax consequences. Particular areas of interest stem from the greater adoption and consideration of value received from activities such as staking and mining in addition to buying ...