7 Accountants Crypto Tax

  Navigating the Intersection | NFT and DeFi The worlds of non-fungible tokens (NFTs) and decentralised finance (DeFi) are transforming the digital landscape rapidly. At 7 Accountants we recognise that while the opportunity is massive, the tax implications can become a complex labyrinth. In this article, we’ll explore the relationship between NFT and DeFi , highlight how tax calculators and tax software fit into the puzzle, and explain what UK investors and creators must know about NFT tax issues and avoidance law. We’ll also recommend the best tools and provide a breakdown of how to calculate those taxes correctly. Understanding NFT and DeFi: Why They Belong Together The phrase “NFT and DeFi” captures two powerful innovations: NFTs (non-fungible tokens) are unique digital assets representing ownership of art, music, collectibles or virtual real-estate. DeFi (decentralised finance) refers to financial services built on blockchain platforms that operate without traditional interm...

What Investors Need to Know The explosive rise of cryptocurrencies brings incredible opportunities — but it also carries significant tax implications. At 7 Accountants , we know many investors and businesses are uncertain about how to satisfy their obligations. This article explores what “crypto tax” really means, why it matters, and how to choose the right crypto tax service or crypto tax advisor to stay compliant and minimise risk. Understanding Crypto Tax When you hear “crypto tax,” you’re talking about the tax obligations that arise when you transact in cryptocurrencies such as Bitcoin, Ethereum or other digital tokens. A crypto tax regime typically covers two main categories : capital gains tax when you dispose of or exchange tokens, and income tax when you receive tokens as payment, through mining, staking or other means. In the UK, for example, the HM Revenue & Customs (HMRC) treats most cryptoasset disposals as subject to capital gains tax (CGT). Low Incomes Tax Reform Grou...