Her Majesty’s Revenue and Customs (HRMC) on Friday updated its tax policy related to cryptocurrency in the UK. Here’s what you need to know to stay compliant with the British taxman.
The HRMC’s statement on Cryptoassets: tax for businesses only provided details for what it calls “exchange tokens” such as Bitcoin. It will, however, provide more info on security and utility tokens at a later date.
All transactions will need to be converted back into pounds sterling when filing tax returns. Adding to this headache, the HRMC said that companies and individuals will also have to keep track of how they converted each transaction.