Cryptoassets: examining HMRC’s manual

HMRC’s new Cryptoassets Manual might, at first glance, seem like a mere repackaging of existing guidance into a new format. In fact, it includes significant new developments, including a broadening of the categories of cryptoassets covered, analysis of crypto-derivatives, and consideration of the tax consequences of ‘validating’ and ‘staking’ in ‘proof of stake’ networks. Unfortunately, some of these developments are hampered by content that is confused and lacking in clarity, and some important gaps in coverage remain. Elsewhere in the international crypto-tax landscape, the EU’s DAC 8 and OECD’s ‘crypto-CRS’ proposals merit consideration by practitioners.