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    • NFT’s and Blockchain Gaming

    The advent of smart contracts and non-fungible tokens have taken the world of cryptocurrency in new (and for many, unexpected) directions. Even HMRC’s newly revised guidance on crypto assets does not even touch on these subjects.

    Nevertheless, there is rising interest in investing in NFT’s and ‘play-to-earn’ gaming. Not surprising when NFT artworks sell for up to US$69 million and players of blockchain games are earning enough to retire from their day jobs.

    Contact us

    Expert crypto advice

    With substantial earnings, it is inevitable that HMRC will soon turn its attention to the taxation of them.

    Unfortunately for HMRC, NFT’s and blockchain gaming don’t necessarily sit well with HMRC’s established understanding as set out in the revised guidance.

    Whether you are an established NFT investor or artist, or just venturing out into this new environment, or you have already earned substantial sums with your CryptoKitties or about to start playing Axie Infinity or The Six Dragons and have big plans, ETC Tax can help.

    Members of our team not only invest in cryptocurrencies but are also involved in NFT’s and blockchain games themselves. We know the space from direct experience.

    Understanding the correct tax treatment of your profits requires a good understanding of the underlying technology and the transactions involved. But that is only the beginning.

    ETC Tax will also understand you and not only will we get your tax return right, we will also help you to plan all of your tax matters, so your NFT or blockchain portfolio works together with your plans for now and the future and alongside your other income and assets.

    Case Study 1

    Mr. T had no prior experience of coding or software development but stumbled upon cryptocurrency early.


    He invested small sums which grew over the years, boosted by a couple of lucky wins with crypto-based gambling platforms.

    That was only the beginning for him because he then stumbled across MegaCryptoPolis and invested much of his gains in that new game.

    Now he generates regular and substantial sums, developing virtual plots of land in that virtual city, producing virtual assets and selling them to other players for Ethereum.

    We helped Mr. T by scrutinising all the different transactions involved in the game to ascertain the correct way of reporting his profits to HMRC.

    Then we looked at his current position, to help him efficiently restructure his gaming activities to be more tax efficient moving forward, dovetailing that with his real-world business profits, his retirement planning and his inheritance planning.

    Case study 2

    Mr. D is an experienced coder. A few years’ ago, he stumbled across a feature of the game CryptoKitties.


    He developed his own code and deployed that on the game’s smart contract to take advantage of an in-built incentive incorporated into the smart contract by the game developers. We researched the underlying technology and transactions, recognising that Mr. D was not merely a player or investor in CryptoKitties.

    We researched the underlying technology and transactions, recognising that Mr. D was not merely a player or investor in CryptoKitties.

    We helped Mr. D to explore the badges of trade and the case law around the definition of gambling to present his filing position to HMRC.

    We then helped him to work out the most effective way to reinvest his gains in a tax efficient way.

    We then helped him to work out the most effective way to reinvest his gains in a tax efficient way.

    Some of our specialists who can help

    Andy Wood

    Founder & Director

    Andy is an experienced tax adviser and a Barrister after being called to the bar in October 2019. Andy’s clients extend across all types of sectors, he has a...

    Angela Wood

    Managing Director

    As ETC’s Managing Director, Angela has overall responsibility for the day to day running of the practice, including operations, finance, HR and marketing. As...

    Simon Denye

    Associate Director

    Simon is one of ETC’s Associate Directors. He has been a tax adviser for 23 years and is a fellow of the ICAEW. Simon works across all areas of tax advisory,...

    Keith Miller

    Associate VAT Director

    Keith primarily specialises in advising on all aspects of VAT, but can also advise on other indirect taxes. Keith works closely w...

    Chris Watts

    Associate Director

    Chris joined ETC as an Associate Director in October 2020. He is a Chartered Tax Adviser and Trust and Estate Practitioner and has advised both private clien...

    Zeeshan Khilji

    Senior Manager, Head of ETC Tax – Midlands

    Zeeshan has a particular specialism in advising owner managed businesses and their stakeholders at all stages of the business life cycle, and regularly advis...

    Sophie Chamberlain

    Senior Manager

    As a Senior Manager, Sophie works across all areas of the business to deliver tax advice to ETC’s broad and varied client base. She has a particul...

    Peter Loughlin

    Business Development Manager

    As Business Development Manager at ETC Tax, my role is to increase our client, contacts and introducer awareness of our services. My customer focus and consu...

    Alexander Wilson

    Tax Manager

    Alexander is a barrister and a chartered tax adviser. He joined ETC in July 2020.

    Alexander has developed a strong specialisation in all matters IR35 ...

    Thomas Slipanczewski

    Assistant Tax Manager

    As a Tax Adviser, Thomas advises clients on a broad range of tax enquiries, his experience includes private client tax, tax investigations and settlements; r...

    Arjan Singh

    Tax Adviser

    Arjan joined ETC in July 2020 as a Tax Adviser and he advises on an array of tax enquires. At present, he is partway through his professional tax qualificati...

    Sarah Aston

    Marketing Coordinator

    As ETC’s Marketing Co-ordinator, Sarah has overall responsibility for the day to day co-ordination of the firm’s marketing activities, including social media...

    Tara Soobhug

    HR Manager

    Tara is ETC’s HR Manager, responsible for dealing with all aspects of HRM within the business, including the onboarding of new joiners, implementing and mana...

    Kirsty Smith

    Practice Manager

    Why a career in Administration?

    I am bit of a stickler for detail and like all my ducks in a row so working in a super organised ro...

    Pamela Boyd

    Finance Coordinator and Team Administrator

    As a member of ETC’s Admin Team, Pamela has responsibility for all client compliance administration, such as producing and issuing engagement letters and car...

    Lauren McKenna

    Business Support Apprentice

    Life before ETC

    Before joining ETC Tax, Lauren previously gained qualifications in both Accounting and Business whilst at sixth form.

    ...

    Craig McLauchlan

    Business Development Manager

    Life before ETC

    Craig is a Chartered Banker after beginning his career working for the Bank of Scotland for 5 years and has since accumulated over 3...

    Olivia Pryer

    Tax Adviser

    Life before ETC

    I have recently completed my BA (Hons) in Accounting and Finance at The University of Salford, which ultimately led me to a career i...

    Help us to help identify what advice you need on your cryptoassets

    To assist our team in reviewing your position and to deal with your enquiry more efficiently, please complete our brief questionnaire, after which you will be asked to leave your contact details if applicable. This will enable us to get a better understanding of your current position, and to advise you correctly. Please ensure all fields are completed in as much detail as possible, as we may be unable to deal with your enquiry if we do not have all the information we need.
    Many thanks.

    Question 1

    Did you make a profit on the sale of cryptoassets exceeding the annual exemption for Capital Gains Tax during any tax year (£12,300 for 2020/21 tax year)?

    Yes No Next

    Question 2

    Did your gross proceeds from the sale of cryptoassets exceed more than 4 times the annual exemption in a single tax year (£49,200 for 2020/21 tax year)?

    Yes No Next < Back

    Question 3

    Have you participated in any wider crypto activities such as ICO’s, hardforks, airdrops, peer to peer lending, margin trading, staking, gaming or mining? If so, please provide a brief description of the relevant crypto assets involved and the value received from these activities.

    Yes No Next < Back

    Question 4

    When did you begin investing in Cryptocurrency and how much have you invested to date?

    Next < Back Skip >

    Question 5

    Please provide an estimate of the current value of your portfolio to date.

    Next < Back Skip >

    Question 6

    Have you previously declared all of your capital gains or profits to HMRC?

    Yes No Next < Back Skip >

    Question 7

    Have you been regularly trading cryptocurrency – if so, please provide an indication of the number of trades on average per month?

    Yes No Next < Back Skip >

    Question 8

    Are you able to obtain full records of your historic crypto transactions? If not, please provide an indication of the time periods for which records may be missing and an estimation of the number of transactions.

    Finish < Back