Cryptoassets are a relatively new type of much talked about asset. This sector is fast-moving and developing all the time.
The CATF (Cryptoasset Taskforce) have currently identified three types of cryptoassets – exchange tokens, utility tokens and security tokens. However, the tax treatment of each is dependent on the nature and use of the token and not the definition.
In the vast majority of cases, individuals hold cryptoassets as a personal investment, usually for capital appreciation in its value, or to make particular purchases. They will be liable to pay Capital Gains Tax when they dispose of their cryptoassets.
If you would like to discuss the tax treatment of your cryptoassets, please call our Personal Tax team on Rugby 01788 539000.