Investing in Crypto Assets?
Over the years the value of investments in Cryptocurrency has increased significantly, more people are using it as a form of investment or way to increase wealth.
Inland Revenue have no specific Cryptocurrency legislation. Cryptocurrency is viewed as personal property, in most instances for the purpose of profit-making. Based on existing tax legislation, each disposal of your investment results in taxable income, or loss to the holder.
It is therefore important to track your crypto investments as each sale, or use of the currency to purchase an item, may trigger a taxable transaction.
If you would like to discuss this further please contact our office.
Maybe you’re aware of the phenomenon that is the Bored Ape Yacht Club and understand what an NFT is? An example that has recently gone viral is a digital, unique copy of an art piece which collectors are purchasing for large sums of money online. An explanation of how the collection works is below: