On 30 March 2021, HMRC published a manual providing guidance on the tax implications that can arise from transactions involving cryptoassets. The manual consists of the following sections:
- an introduction, where various definitions are provided, including, without being limited to, cryptoassets, distributed ledger technology, exchanges, public and private keys, and wallets;
- tax implications for individuals, where clarifications are provided on the circumstances under which individuals are liable to pay income tax or capital gains tax, as well as other taxes, such as inheritance tax; and
- tax implications for businesses, where clarifications are provided on how HM Revenue and Customs (HMRC) will tax transactions that involve businesses and companies (including sole traders or partnerships).
HMRC clarifies that, as the underlying technology and the areas in which cryptoassets are used continues to develop, the specific facts of each case will need to be established before applying the relevant tax provisions, while the views expressed in the manual may evolve further.