HMRC has released the long awaited guidance on how cryptoassets will be taxed on individuals.
There are very few surprises in the paper, although there are plenty of caveats made such that HMRC may amend its approach if there are unexpected consequences.
There are interesting points to read on forks and mining. Further, it is good to see that HMRC will allow for the pooling of each asset such that very large latent gains can be watered down somewhat by subsequent purchases.
The key take home message is that as the UK has a self assessment regime it is for the taxpayer to keep separate records for each cryptoasset transaction.
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. Individuals will be liable to pay Income Tax and National Insurance contributions on cryptoassets which they receive from: their employer as a form of non-cash payment mining, transaction confirmation or airdrops