The latest crypto news: How cryptos and their users will be effected by the new UK crypto assets tax
If you’ve been following the news over the past few weeks, you may have noticed that the UK government are planning to regulate crypto.
On February 1st 2023, the UK’s HM Treasury published a consultation on the matter of how it plans to carry out stricter regulations on cryptocurrencies in the future.
The plans include:
- How the UK government plan to tax cryptocurrencies in the future
- How they plan to protect users who invest in cryptos
- Their plans to help with the growth of crypto
So, what does this report mean for cryptos like Bitcoin (BTC), Big Eyes Coin (BIG) and Solana (SOL), for example?
UK Gov. Regulations for Cryptos: Good or Bad?
The UK government acknowledges crypto as a new and important driving force of financial technology. That’s good news for cryptos and crypto users in the UK.
However, the government are also aware of its potential risks, dubbing the crypto world as a ‘very volatile market’.
To counteract this, the UK government plan to protect crypto users from inaccurate information through their ‘crypto asset financial promotions regime’.
To do this, the UK government will expect crypto advertisements to be ‘fair, clear and not misleading’.
This is great news for new and current crypto investors to ensure they can make highly informed and beneficial decisions.
But wait, there’s even better crypto news on the horizon…
Despite the recent volatility of the crypto market, cryptos like Bitcoin have seen their value increase rapidly this year. Today, a single Bitcoin is worth £22,944.68 or $28,194.50.
In other news, Big Eyes Coin’s bonus coin is offering a bonus code for a limited time. Users can take advantage of the code: BULLRUN250 with their $BIG Token purchases.
Crypto Market Ups and Downs
Not all cryptos have been able to withstand the constant changes we are seeing in the world of decentralised finance.
Recently, Solana has found itself in a spot of bother.
This is due to outage problems, overloading issues and ties with the scandalous FTX founder, Sam Bankman-Fried.
And since early 2022 Solana has lost around $50 billion in its value. Yikes.
Will you have to pay tax on Crypto in the UK?
To put a long story short, yes. The regulations are to bring this into effect.
Cryptos will be taxed in the UK and HMRC states that crypto-assets will be categorised as capital gains tax (CGT) and income tax, but it depends on the type of transaction.
This new budget will put crypto assets in its own category on tax return forms.
Therefore, if a person makes gains by selling or trading digital assets they will need to pay tax on that figure.
Tax rates are charged at around 10% or 18% for basic rates, and 20% or 28% for higher tax rates, which varies based on the amount of each gain that individual has made.
Consequently, people will be required to fill out a tax return self-assessment forms so the government can identify any cryptocurrency assets a person owns.
The main things to take away from this are:
- These changes will take effect on tax forms for the 2024-2025 tax year.
- This plan means that crypto should have a bright future
- If you choose to invest in this new and exciting venture, it’s important to do your homework.
Cryptocurrencies are worth having a look at to see if an investment is right for you.
To read more about the UK government regulations you can click here.
Big Eyes Coin (BIG)
WARNING: The investment in crypto assets is not regulated, it may not be suitable for retail investors and the total amount invested could be lost
AVISO IMPORTANTE: La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y perderse la totalidad del importe invertido