United Kingdom Releases Tax Advice for Cryptocurrency Investors

[MOProgress]

The United Kingdom tax collection service published its first detailed tax legislation for private cryptocurrency holders Dec. 19 following a lengthy consultation period.
Its new policy paper, “Cryptoassets for Individuals,” sets out likely tax obligations for private investors who buy, sell, get paid in and even lose cryptocurrency.
Capping months of uncertainty among U.K. taxpayers over what they need and need not report to authorities about their holdings, the latest information is officially endorsed by tax collection agency HM Revenue & Customs (HMRC).
Specifically, individuals will be liable to pay either Capital Gains Tax (CGT) or Income Tax (IT) depending on the type of cryptocurrency transactions they are involved in.
In the case of receiving payment from an employer in cryptocurrency, employees would also have to pay social security contributions known as National Insurance (NI).
“The tax treatment of cryptoassets continues to develop due to the evolving nature of the underlying technology and the areas in which cryptoassets are used,” HMRC writes introducing the paper.

Continued at Cointelegraph.