VAT Exempt Items:
Charges/fees relating to the arrangement of a crypto-currency transaction
Crypto-currency income from all mining activities
Crypto-currency transfers to fiat
Corporate Tax:
Corporation Taxes on crypto-currencies have no additional special rules and will be viewed like foreign exchange and loans.
Income Tax:
Business profits from any crypto-currency related activities (buying, selling, trading) are taxed as normal income.
Capital Gains:
Capital gains or losses from crypto-currencies are only usable as capital gains for an individual, or as corporation tax for a business.
Gambling Gains:
Gambling Gains are specifically not taxable, and losses cannot be offset against other reported gains.
“The tax treatments outlined in this brief are for tax purposes only. They in no way reflect on the treatment of cryptocurrencies for regulatory or other purposes.”
For more information please visit the HM Customs & Revenue Website here – http://www.hmrc.gov.uk/briefs/vat/brief0914.htm