The number of people investing and trading in Bitcoin and other cryptocurrencies is increasing, but did you know that these activities could result in an unexpected tax bill − or worse, an HMRC enquiry?

Both individual investors and companies may need to notify HMRC of disposals of cryptoassets, depending on the proceeds. If the cryptoassets have been sold at a profit, then you may also owe tax. There can also be tax to pay even if money isn’t withdrawn from a wallet but is reinvested into a different cryptocurrency.

Companies holding cryptoassets also need to include them in their accounts.

We can assist you with the reporting of disposals and the accounts treatment and disclosure of cryptoassets held. We can also help if you are the subject of an HMRC enquiry, as we expect to see an increasing number of these focusing on buyers and sellers of cryptoassets. For more details, read our Briefing here

Whatever your involvement with cryptoassets, you should be aware that there can be implications for tax.

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