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<p>The Government is committed to retaining its global leadership position in fintech
and to creating a regulatory environment that allows people to use innovative technologies
reliably and safely, while protecting against the risks of them being exploited by
criminals.</p><p> </p><p>Businesses trading in or using cryptoassets are taxed on
their trading profits. Where a person realises Chargeable Gains from increases in
the value of cryptoassets, Capital Gains Tax (CGT) or Corporation Tax on Chargeable
Gains may be due. If CGT applies, only Chargeable Gains above the Annual Exempt Amount
are taxed.</p><p> </p><p>Cryptoassets can be easily acquired and transferred, including
across borders, and while the blockchain provides a transparent and immutable record
of transactions, it does not usually record the identity of the owners of cryptoassets.
HMRC has developed its capability to take advantage of opportunities that the blockchain
offers for forensic compliance work in order to identify those that have failed to
declare their gains. HMRC continues to actively monitor the compliance risks as the
use of cryptoassets develops.</p>
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