HMRC have issued a reminder that income or gains involving cryptoassets may need to be reported in the self-assessment tax return. The reminder highlights that tax could be due where an individual receives cryptoassets from employment, where they are held as part of a trade, or where crypto-related activities generate an income. Gains on disposals of cryptoassets should also be reported, and taxpayers may want to report any losses during 2022/23 for offsetting against future gains.
Commenting on the nudge from HMRC, Dawn Register, Head of Tax Dispute Resolution at BDO said: ‘This warning from HMRC highlights the tax authority’s growing interest in those people who have made gains from cryptoassets but have failed to declare them.
‘Part of this may be down to lack of knowledge. Indeed, HMRC’s own research has found that crypto ownership is more concentrated among younger age groups with many people being unaware of the tax treatment. However, ignorance of the rules won’t give you a free pass.’
HMRC have issued a reminder that income or gains involving cryptoassets may need to be reported in the self-assessment tax return. The reminder highlights that tax could be due where an individual receives cryptoassets from employment, where they are held as part of a trade, or where crypto-related activities generate an income. Gains on disposals of cryptoassets should also be reported, and taxpayers may want to report any losses during 2022/23 for offsetting against future gains.
Commenting on the nudge from HMRC, Dawn Register, Head of Tax Dispute Resolution at BDO said: ‘This warning from HMRC highlights the tax authority’s growing interest in those people who have made gains from cryptoassets but have failed to declare them.
‘Part of this may be down to lack of knowledge. Indeed, HMRC’s own research has found that crypto ownership is more concentrated among younger age groups with many people being unaware of the tax treatment. However, ignorance of the rules won’t give you a free pass.’
