Crypto Asset Tax Disclosures – Dealing with HMRC
Posted on 11 Dec 2023, by Jeremy Johnson
HMRC has launched a specific disclosure facility for people who have made profits on crypto currency or assets, but who have failed to pay tax on those profits.
We wrote a blog series in 2022 in relation to crypto assets and how and when a tax liability may arise. We have links to these below, if you are looking for some more detailed information on your specific circumstances.
Crypto currency is not treated as a fiat currency from HMRC’s perspective, instead it is treated as an asset. For most individuals, if a crypto currency, NFT or similar is sold for more than it is bought for, the profit will usually be taxable as a capital gain. In some limited circumstances for individuals, repeated buying and selling of crypto may be a ‘trade’, and income tax, rather than capital gains tax will then apply.
HMRC has started to obtain information from crypto exchanges about individual’s purchases and sales and, in some cases, has sent ‘nudge’ letters suggesting that this is reviewed in case tax has been missed. Now HMRC has announced it will launch a specific service for crypto disclosures.
Many people have been unaware of their tax obligations in relation to crypto profits this has prompted HMRC to focus on this area.
How Can We Help?
Over the years we have helped hundreds of people to make disclosures to HMRC where a mistake has been discovered and to get their tax affairs back on track. We can deal with the whole process, make sure that you benefit from allowances or reliefs available and ensure that you pay the lowest penalty appropriate to your circumstances.
Get In Touch
You can get in touch with our friendly and experienced team on: 0203 675 8122.
Further details on crypto transactions and tax