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Policy approach to cryptocurrencies

13 November 2018 / Gemma Hedges
Issue: 4672 / Categories: Comment & Analysis

Cracking the crypto code


  • The Budget included a report of the findings of a government taskforce on cryptocurrencies.
  • Generally cryptocurrencies are fungible tradable units managed by a blockchain.
  • Cryptocurrencies are not usually classed as currency and are closer to an investment in shares.
  • Tokens can have different properties such as a fixed payment on redemption or a share of profits.
  • HMRC is understood to be working on the underlying tax issues.
  • Corporation tax aspects.
  • HMRC has suggested that buying and selling may be akin to gambling.
  • If HMRC is keen to avoid granting relief for losses does this mean profits are tax-free?

One of the Budget’s pronouncements on taxation that may have passed below the radar...

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