CRYPTO22050 | Cryptoassets for individuals: Capital Gains Tax: what is an asset

Tokens are digital and therefore intangible, but count as a ‘chargeable asset’ for Capital Gains Tax if they’re both:

• capable of being owned

• have a value that can be realised

For more information about what makes an ‘asset’ for Capital Gains Tax purposes, see CG12000.

Customers looking for guidance on paying Capital Gains Tax when disposing of cryptoassets can refer to this guidance: https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets.

HMRC expects that buying and selling of tokens by an individual will normally amount to investment activity (rather than a trade of dealing in tokens). In such cases, if an individual invests in tokens they will typically have to pay Capital Gains Tax on any gains they realise.