If you are a cryptocurrency investor, a capital gains tax event may occur when you dispose of cryptocurrency. A disposal can occur when you:
- sell cryptocurrency
- gift cryptocurrency
- trade or exchange cryptocurrency
- use cryptocurrency to obtain goods or services
If you have set up a business with the intention of generating profit from the purchase and sale of cryptocurrency you may be treated as a cryptocurrency Trader. If so, the net profit will be taxed at marginal tax rates.
For further information on transacting in cryptocurrency, click below.