UK, individuals and entities are required to pay taxes on cryptocurrency transactions. However, the specific tax obligations can vary depending on the country and the nature of the transactions. Here’s a general overview for the UK:
Capital Gains Tax (CGT): In the UK, if you sell cryptocurrency for more than you purchased it for, you are likely to be liable for Capital Gains Tax on the profit. This includes exchanging cryptocurrency for another cryptocurrency, using it to pay for goods or services, or giving it away to someone other than a spouse or civil partner.
Income Tax and National Insurance Contributions: If you receive cryptocurrency from mining, airdrops, or as earnings from an employer, it could be subject to Income Tax and National Insurance contributions.
VAT: The value-added tax treatment of cryptocurrencies is a complex area. Generally, VAT is not due on the value of the cryptocurrencies themselves when they are used in transactions, but it may apply to goods and services sold in exchange for cryptocurrency.