In March, 2021, Her Majesty’s Revenue and Customs (HMRC) issued tax guidance on cryptoassets. You can always reference that guide for additional information. Since HMRC refers to cryptocurrencies as cryptoassets, we will use that naming convention for the remainder of this guide.
To begin, the most common factors affecting how Bitcoin and other cryptoassets are taxed in the UK are as follows:
1. Are you trading as a business or for personal investment?
2. How much did you earn in all Capital Gains, not just from cryptoassets?
3. Did you sell and rebuy the same cryptoasset on the same day, or within 30 days?