HMRC published new cryptocurrency taxation guidance for businesses last week. This complements similar guidelines for individuals that were released at the end of last year.
The guidelines explain how businesses using cryptocurrencies are affected by different types of taxes and clarifies the reporting information they must declare to HMRC.
The guidance confirms that companies carrying out activities involving the exchange of tokens (i.e. buying and selling tokens, exchanging tokens for other assets, mining and providing goods or services in return for tokens) will be liable to pay tax. However, the guidance states that HMRC does not consider cryptocurrencies such as bitcoin to be either currency or "stock or marketable securities," which generally exempts cryptocurrencies from stamp duty. However, tokens used in debt transactions may still be subject to stamp duty.
HMRC will also require businesses to keep records of cryptocurrency transactions in pounds sterlings and keep records of the valuation methodology for these transactions. Businesses are also expected to record the amount spent on each type of exchange token.
Link to related article: www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-tax-for-businesses