Exchanges will pay 2% tax in the UK
British tax office HMRC announced that all licensed exchanges will be required to pay 2% income tax. With this in mind, cryptocurrency platforms will introduce higher fees for their clients.
Given how popular the digital currency industry is, the interest of regulators in it is understandable. A lot of money is spinning in this area, and the state wants to receive tax deductions to the treasury.
As a reminder, the tax for digital companies was introduced in April 2020. Initially, it extended to operators of social networks, search engines and other companies. Subsequently, cryptocurrency service providers were added to this category.
The Financial Conduct Authority (FCA) introduced a complex licensing system, and this was a significant blow to the industry. All exchanges were obliged to register and comply with the AML rules. This was negatively perceived by users and led to a lot of discussions on social networks.
As for taxation for individuals, bitcoin and altcoins are not recognized in the country as an analogue of fiat currency. They are considered intangible (virtual) assets and are taxed in accordance with the second chapter of the local Income Taxation Act 1992.
In this case, the tax depends on the type of tokens - coins, securities, utilities. According to HMRC employees, the attitude of regulators to taxation of cryptocurrencies will depend on what these tokens will be used for. Mainly, the tax will be levied on the cryptocurrency bought for the purpose of investment, thanks to which the user of the cryptosphere receives income.