The United Kingdom, Her Majesty’s Revenue & Customs has released crypto taxation terms guidance documents on the 1st of November, 2019.
The guidance report covers the taxation policies of the crypto-business alongside some record-keeping requisites for purposes extending to auditing. The United Kingdom is tough on following protocols and keeping the Financial Action Task Force (FATF) and the G7 happy.
Crypto taxation terms in the UK defined
Her Majesty’s Revenue and Customs has stated that these corporations must keep records of all exchanges and transitions they initiate in pounds sterling. This practice would be irrespective of whether the trade is between the same or different crypto-assets.
Furthermore, the crypto taxation terms guidance document elucidated how crypto corporations will be predisposed to the following taxes:
- Value-Added Tax
- Capital Gains Tax
- Corporate Tax
- Stamp Tax
- Income Tax
- National Insurance Contributions
The government stated how assets must be enumerated as generally exercised while dealing with accounting.
Furthermore, the issue sheds light on what point tax offices will consider as ‘trading activity’ during the exchange. This is dependent on the following factors:
- Intent (in terms of calculated risks and profits)
- Level of Organization
- Periodicity and Degree of Activity
Her Majesty’s Revenue and Customs also pointed towards the variety of data the tax office will need from those engaging for reasons of auditing. As an example, data on the valuation methodologies coupled with the numbers spent on the various kinds of tokens for exchange will be required by the office.
