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BullDigest's May 25 Post-Market Summary of Coinbase Global, Inc.

  • 25.05.2025 22:07
  • bulldigest.com
  • Keywords: Post-Market, Summary, Coinbase Global, Inc.

Check out BullDigest's May 25 Post-Market Summary of Coinbase Global, Inc.. We provide a summary of the key news from market opening hours.

Post-Market Summary

Context

Crypto Tax UK: 2025 Guide Summary

Key Treatment of Cryptocurrency in the UK

  • HMRC classifies cryptocurrency as a capital asset, subject to both Capital Gains Tax (CGT) and Income Tax based on transaction type.

Capital Gains Tax (CGT) Applicability

  • Selling crypto for fiat: Trigger CGT.
  • Swapping crypto for crypto: Subject to CGT.
  • Spending crypto on goods/services: Treated as a disposal, taxable as CGT.
  • Gifting crypto (excluding spouses): Gifting crypto to non-spouses may trigger CGT.
  • Selling NFTs: Proceeds are subject to CGT.

Income Tax Applicability

  • Employee remuneration in crypto:/crypto bonuses or salaries are taxable as income.
  • Mining rewards: Subject to Income Tax.
  • Staking rewards: Earned income, taxable as per standard rates.
  • Airdrops for services: If received for providing a service, taxable as income.
  • DeFi and liquidity pool rewards: Earned income, taxable as per standard rates.
  • Crypto as salary/bonuses: Included in taxable income.
  • Referral/promotional bonuses: Taxable as income.

CGT Details

  • Transaction Tracking: Must track:
    • Transaction dates.
    • Amounts transacted.
    • GBP value at the time of transaction.
    • Cost basis (purchase price).
    • Fees paid.
  • Capital Losses: Can offset gains; excess losses can be carried forward.

Income Tax Details

  • Tax Rates (2024/2025):
    • Personal Allowance: £12,570 (tax-free; reduced if income exceeds £125,140).
    • Basic Rate: 20% (£12,571 - £50,270).
    • Higher Rate: 40% (£50,271 - £125,140).
    • Additional Rate: 45% (over £125,140).

Non-Taxable Transactions

  • Buying crypto with fiat: Not taxable.
  • Holding crypto: No tax implications unless disposed of.
  • Transferring crypto between own wallets: Not taxable.

Market and Business Implications

  • Regulatory Compliance: Businesses must ensure compliance with HMRC reporting requirements for crypto transactions.
  • Tax Planning: Individuals and businesses may need to adjust strategies to minimize tax liabilities, such as leveraging capital losses.
  • Industry Impact: The classification of crypto as a capital asset may influence investment strategies and risk assessments.
  • Competitive Dynamics: Businesses accepting crypto payments must consider tax implications for employees and customers.

Long-Term Effects

  • Increased Scrutiny: HMRC’s focus on crypto may lead to stricter enforcement and reporting requirements.
  • Market Adaptation: Businesses and individuals will need to adapt to evolving tax regulations.

Conclusion

The UK’s treatment of cryptocurrency under CGT and Income Tax creates a complex regulatory environment, requiring businesses and individuals to carefully track transactions and consult tax professionals.