After a long consultation period, the British tax collection service has published its first detailed tax rules for citizens with cryptocurrencies.
The new "Cryptoassets for Individuals" document identifies probable tax liabilities for private investors who buy, sell, earn and even lose cryptocurrencies.
After months of uncertainty among UK taxpayers about what they must and do not have to report to the authorities about their assets. The latest information is officially approved by the tax office of HM Revenue & Customs (HMRC).
According to the published information, individuals will be required to pay capital gains tax (CGT) or income tax depending on the type of cryptocurrency transactions in which they are involved.
If you receive a payment from your employer in a census, employees would have to pay social security contributions known as National Insurance.
"Tax treatment of asset cryptography continues to evolve due to the evolving nature of underlying technology and the areas in which assets are used. Therefore, the HMRC will look at the facts of each case and apply the relevant tax provisions in line with what actually happened (instead of referring to terminology). Our views can evolve with the development of the sector" - writes HMRC.
The document does not contain information on the obligations of enterprises, which according to the authorities will appear later.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has reversed after the 61% Fibo retracement level was hit and currently is trading around the level of $3,666. The nearest technical support is seen at the level of $3,595. The market conditions are now overbought so a temporary correction is on the table. The game-changing level is seen at swing high around the level of $4,374.
