In December 2018 HMRC published guidance on the taxation of cryptoassets. HMRC confirms that:
- Most investors will be subject to Capital Gains Tax on gains and losses..
- It will be rare for investment in cryptoassets to be regarded as trading, although ‘mining’ is likely to indicate a trading activity.
- A capital loss may be claimed in the event that a cryptoasset becomes of a negligible value. Evidence of any loss will need to be proved if the loss of the asset arises as a result of the accidental destruction of a private encryption key or fraud.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.