Cryptoassets and underpinning them distributed ledger technology have attracted significant attention globally. Spread of transactions with cryptoassets caused countries to develop their own strategies in the legal regulation and tax treatment of cryptoassets and dealings with them.
This article provides an overview of cryptoassets and the underlying technology, represents the main activities with cryptoassets focusing on cryptocurrencies, i.e. Bitcoin, Litecoin and equivalents. Despite the absence of their support by central banks or other central bodies cryptocurrencies are commonly used as means of exchange or for investment.
The nature of cryptocurrencies and the types of transactions with them determine their tax treatment. The article considers the position of HMRC that denies the recognition of cryptocurrency as of currency or money and highlights the intangible nature of cryptoassets.