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Inside money, markets, and Big Tech

This article was published on December 19, 2018

UK tax authorities: ‘crypto assets’ are not currency or money

You can't hide from the taxman

UK tax authorities: ‘crypto assets’ are not currency or money
Matthew Beedham
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Matthew Beedham

Editor, SHIFT by TNW

Matthew is the editor of SHIFT. He likes electric cars, and other things with wheels, wings, or hulls. Matthew is the editor of SHIFT. He likes electric cars, and other things with wheels, wings, or hulls.

The UK‘s tax office, Her Majesty’s Revenue and Customs, published details that outlines its stance on cryptocurrency and digital assets, obviously in the name of taxation.

In a document titled “cryptoassets for individuals,” spotted by Coindesk, the HMRC highlights how it does “not consider cryptoassets to be currency or money.” While this might sound anti-cryptocurrency, it’s a stance that the HMRC has to take in order to classify digital assets for what it deems as appropriate taxation.

Indeed, the HMRC sees crypotcurrency, tokens, and digital assets of this nature as property rather than as forms of money.

As a result, cryptocurrency investors who buy based on speculation will need to pay capital gains tax, but only when they sell their coins. If you receive tokens or coins as forms of payment, whether that be from your employer, from mining, transaction fees, or even airdrops you will be liable for standard UK income tax and national insurance.

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