HM Revenue and Customs has no plans to allow UK residents to pay taxes in digital currencies

Maria Nikolova

Conservative MP Lord Bates sheds light on HMRC tax policy relating to cryptocurrencies.

HM Revenue and Customs has no plans to permit to UK taxpayers to pay their taxes in digital currencies. This was stated by Conservative MP Lord Bates in a written answer to a question posed by Lord Harris of Haringey.

Lord Harris of Haringey has asked whether the government has plans to allow UK taxpayers to pay their taxes in digital currency.

HM Revenue and Customs does not offer digital currencies as a payment method and has no current plans to do so, said Lord Bates.

Lord Bates also provided some information regarding taxation for the digital currency sector and any potential reforms in this aspect. He explained that “gains made on digital currency are currently chargeable at the normal Capital Gains Tax rates, depending on the facts of the case”. The government keeps all tax policy under review, he added.

The information was given shortly after Lord Bates clarified the stance of the UK Government on the possible regulation of digital currency businesses. On November 21, 2017, he said that the Government is currently negotiating amendments to the 4th Anti-Money Laundering Directive set to bring virtual currency exchange platforms and custodian wallet providers into the scope of Anti-Money Laundering and Counter-Terrorist Financing regulation.

This will require such firms to conduct due diligence upon their customers, with their activities being overseen by national competent authorities for these areas, he added. The government supports the intention behind these amendments.

Lord Bates noted that the stance of individual firms towards providers of digital currencies is a commercial decision for those firms, and it would not be appropriate for the Government to intervene.

In September this year, the Financial Conduct Authority issued a consumer warning about the risks of Initial Coin Offerings (ICOs). And about two weeks ago, the regulator issued a special warning about the risks associated with cryptocurrency CFDs.

Read this next

Digital Assets

Bitcoin price flash crashed to $8,200 on Binance.US platform

Bitcoin price briefly crashed to $8,200 (not a typo) Wednesday on Binance.US, the American outpost of the world’s biggest crypto exchange.

Digital Assets

FTX Trading lands $25 billion valuation after $450 million investment

FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, said on Thursday its valuation had risen to $25 billion after a $450 million funding round that included a clutch of heavyweights from traditional finance.

Digital Assets

Nukkleus enters booming crypto ETF space with 5% stake in Jacobi

Jacobi is one of the first companies to offer Bitcoin through mutual funds in Europe. Most regulators restrict cryptocurrencies from being directly held in funds. Crypto-linked funds may be a workaround. 

Industry News

FX and Crypto trading fueled by competition among young investors, FCA

The regulator believes higher-risk investments are not compatible with these investors’ risk tolerance or comprehension. 

Digital Assets

FCA wants more power to supervise cryptoasset businesses

The FCA stated its concern that the registration standards it is permitted to apply under the MLRs are far less demanding than those applicable under FSMA.

Industry News, VOD

Interview with Match-Prime & Match-Trade Technologies at the iFX EXPO: The winning combination of liquidity and technology

FinanceFeeds went to Limassol, Cyprus, last week to meet the industry leaders. A key highlight was the interview with the executives of Match-Prime Liquidity and Match-Trade Technologies present at the show; Svetlana Kulikova, the Head of Match-Trade Cyprus, and Andreas Kapsos managing the Liquidity Provider. 

Industry News

Kikit & Mess charged with $3.9m FX and Crypto ponzi scheme

The scammer used the money to pay for travel costs, including chartering a private jet, renting a luxury mansion and cars, leasing a luxury automobile, as well as purchasing real estate, according to the CFTC.

Digital Assets

Ripple extends further in Middle East

Ripple has been quickly expanding its footprint in the Middle East. Earlier this month, it became official that the Qatar National Bank (QNB) plans to launch a remittance platform based on Ripple blockchain technology.

Digital Assets

Lukka acquires Blox Finance to expand data offering on crypto ecosystem

Lukka’s costumers rely on institutional-grade technology infrastructure with a breadth of coverage across blockchains, exchanges, wallets, and other venues and data sources.

<