The British government said that each sale BTC encryption assets to obtain profits, individual investors will have the obligation to pay capital gains tax. In December 19th announced a new tax guide, Her Majesty’s revenue and customs (HMRC) also said that from employers instead of cash or digital assets obtained from mining activities and drop would be taxed according to current income tax and national insurance law..
By imposing encryption assets
Governments around the world are trying to take advantage of the booming industry chain and block encryption currency through a series of personal and corporate tax measures. HMRC’s new tax framework does not include the UK digital assets of enterprises and companies, and “do not explicitly consider the” personal holdings for commercial purposes tokens. “Due to the changing technology and the use of encryption based encryption assets assets, tax treatment continues to develop,” explained the house tax. Therefore, HMRC will look at the facts of each case, and according to the actual events (rather than in terms of reference) pursuant to the provisions of the applicable tax, “he added. British tax authorities tend to be regarded as the property of virtual currency and non currency. It reiterated this position in the new policy document, while emphasizing the encryption currency trading is not “gambling”. Crypto currency capital gains – Sales payable under this background as property may be between 10% to 28%, depending on the taxpayer’s income rate. Investors through mining, transaction fees or drop money “to provide a service or expected to provide service” will be required to pay income tax and make a contribution to the national insurance scheme, the agency explained in detail. HMRC said: In most cases, the individual will encrypt the assets as a personal investment, usually for the value of capital appreciation or a particular purchase. They are at the disposal of the encryption of assets shall have the obligation to pay capital gains tax. It added that “in some cases, is to encrypt the assets of financial transactions personal business, therefore will have taxable profits. This may be unusual, but in this case, the income tax preference to capital gains tax rules. “ European regulators focus on encryption monetary problems
In Europe, regulators complained of encryption currency risk, and has repeatedly claimed that they contribute to increased money laundering and terrorism, while under the investor funds fraud at the mercy of A. They begged alarmist exacerbated the government pressure to take action, many people issued a series of laws and regulations, ostensibly to protect public funds and prevent the risk of financial instability.
In October, the UK financial conduct Authority announced a ban on the encryption of derivative products plan. It also said that the legal exchange and managed encryption wallet providers will be included in the scope of anti money laundering supervision. The purpose is to strengthen consumer protection and curb illegal capital flows. The tax and customs tax standards will inevitably restrict and prevent tax evasion, especially for so far seems to be basically unregulated supervision of asset classes. In its report, the tax collector also comes with a bifurcation of digital coins, lost private key, stolen assets and other relevant tax. Hard fork coins usually need to pay capital gains tax, but the HMRC will consider the difficulties of the situation”.