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2023-03-31

How Investing vs Trading impacts tax

In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.

  • Investing is subject to capital gains tax or income tax, depending on the nature of the transaction.
  • Trading in this case refers to self-employment which is subject to income tax and National Insurance Contributions.

The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.

In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.

If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.

How is crypto tax calculated in the United States?

You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.

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Product update - 13th May 2022

At Summ (formerly Crypto Tax Calculator), we are constantly working on improving our product so you can have the best experience at tax time. Check out our blog for the latest product updates.

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This tax guide is regularly updated: Last Update  
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Hello there, crypto tax pals! We’ve decided to turn out product newsletters into blog posts, so you can access information on the latest updates from various sources. Without further ado, let’s dive into the latest Product Update.

Duplicate transaction

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You are now able to duplicate transactions in the review transactions page. For the transaction in question, simply click on the three dots, and select "Duplicate". This will duplicate the contents of the original transaction, for both individual, and grouped transactions (e.g. Trade and Swap).

Ability to select date format for Manual CSV imports

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Whilst we previously only supported importing manual CSVs in our standard date format (YYYY-MM-DD), we now support importing CSVs with two new date formats: MM-DD-YYYY and DD-MM-YYYY. You can select these within the Advanced dropdown.

Upgraded accountant functionality

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Users on our accountant plan now have the ability to re-invite collaborators and cancel pending invitations.

New report: Expense report

This is a new report outlining any miscellaneous expenses that you may have incurred when making crypto transactions. It includes any expense transactions, fee transactions, and gas fees or exchange fees when making a transfer between wallets or exchanges.

New landing pages

On our new accountant landing page, you can now book a demo with us, or submit an accountant enquiry form to get directly in touch with our partnerships team.

We also have 3 new feature pages to highlight 3 core aspects of our app: NFT SupportDeFi Support and Tax Reports.

New integration

We’re excited to announce that our integration with eToro is now live!

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Simply download your eToro transaction history CSV, and import it into our app to start reconciling your eToro transactions.

Minor changes

We have added support for the updated Kucoin CSV and Coinex CSV files.

The Import Data page has had a UI uplift, to make it as easy as possible to add in new wallets and exchanges into Summ (formerly Crypto Tax Calculator).

The bulk edit bar has also had a slight re-design to make it easier to implement new changes.

You can now filter by wallet nickname in the review transactions page.

De informatie op deze website is van algemene aard en houdt geen fiscaal, boekhoudkundig of juridisch advies in. Het is opgesteld zonder rekening te houden met uw doelstellingen, financiële situatie of behoeften. Voordat u op basis van deze informatie handelt, dient u de geschiktheid van de informatie te overwegen, rekening houdend met uw eigen doelstellingen, financiële situatie en behoeften, en professioneel advies in te winnen.
Summ (voorheen Crypto Tax Calculator) wijst alle garanties, toezeggingen en garanties af, expliciet of impliciet, en is niet aansprakelijk voor welk verlies of welke schade dan ook (inclusief menselijke of computerfouten, nalatigheid of anderszins, of incidentele of gevolgschade) voortvloeiend uit of in verband met, enig gebruik van of vertrouwen op de informatie of adviezen op deze website. De gebruiker moet als enige de verantwoordelijkheid aanvaarden die verband houdt met het gebruik van het materiaal op deze site, ongeacht het doel waarvoor dergelijk gebruik of dergelijke resultaten worden toegepast. De informatie op deze website is geen vervanging voor gespecialiseerd advies.

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