The United Kingdom’s tax authority has released an updated taxation guidance for businesses.
This guidance clearly states how income tax, corporate tax, national insurance contributions, and other taxes are derived.
Her Majesty’s Revenue and Customs (HMRC) states clearly that cryptocurrencies are not currencies nor marketable securities, hence are exempted from stamp tax. However, tokens used in debit transactions are subject to stamp taxes according to the guidance.
HRMC requires users to keep track of the estimated market value of these cryptocurrencies. Businesses are also required to record the amount of money spent on any exchange token.
The taxation guidance published by the HRMC in 2018 was focused on individuals. It provided clarification on many taxation issues that relate to airdrops, forks and mining. The guidance also requires individuals to keep track of crypto transactions in pounds sterling.
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