Cryptocurrency
Cryptocurrency is becoming increasingly popular as more people include them as part of their investment portfolios.
In spite of this, tax treatments are not well understood, but it’s important to have a good understanding of the tax implications before making an investment in cryptocurrency.
The 
Difference
We have experience working with a number of our clients, who have chosen cryptoassets as both investments and income-generating endeavours.
We’ll gladly discuss any queries regarding tax within the cryptocurrency trading market.
You may have to pay tax as Personal Income Tax, Capital Gains Tax or Corporation Tax, depending on your cryptocurrency activity.
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Education on cryptocurrency trading
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Need Crypto Tax Advice?
Cryptoassets are intangible electronic tokens that have value or rights on an electronic platform and can be transferred, stored, and traded.
HMRC have identified three main types of cryptoasset:
- Exchange tokens – intended to be used a payment (i.e bitcoin)
- Utility tokens – Which provide access to goods or services
- Security Tokens – Relating to business interests/shares in business profits
The crypto assets are recorded through a form of Distributed Ledger Technology (DLT) often referred to as a ‘blockchain’.
How are Cryptoassets taxed?
Cryptoassets could be subject to Capital Gains Tax, Income Tax or Corporation Tax:
- Capital Gains Tax – Investing in cryptoassets as a personal investment to create a profit.
- Income Tax – Trading income and employment income
- Corporation Tax – A limited company making investments in cryptoassets.
Don’t Just Take Our Word For It
They have always treated us like friends, rather than clients, and that personal touch works extremely well for us.
“Ormerod Rutter has, and still does, unquestionably, provided impeccable service to our family business, DNB roofing LTD, for the last six years. The continuity of encouragement and support provided from the very first day to present, has been outstanding and they have successfully guided the business through not only the highs, but throughout the lows, especially the pandemic. They have always treated us like friends, rather than clients, and that personal touch works extremely well for us. We are so very grateful to them all at OR and could not recommend them enough.”
– Dan, Managing Director of DNB Roofing LTD
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