- HM Revenue & Customs is reported to be working alongside leading cryptocurrency exchange platforms to gather users details, in a bid to prompt investors to be mindful of the tax implications when dealing with cryptocurrency assets.
- Investors can expect to receive ‘nudge’ letters from HM Revenue & Customs, reminding them to pay their taxes correctly.
- For UK tax purposes, crypto assets are usually subject to capital gains tax for individuals who hold them as personal investments on any profit realised.
- As with any asset if there has been no disposal of the cryptocurrencies there is not usually any tax due as you only pay taxes in the UK on realised profits.”
- HMRC receives information from crypto exchanges and will pursue those who fail to report their profits correctly.
- Penalties for failure to report gains can be quite severe.”
- The FCA currently has no regulatory oversight over direct investments in cryptoassets and nonfungible tokens and warned investors that with no consumer protections in place, investors should be prepared to lose all of their investment.
- The watchdog said those marketing cryptoassets should state that cryptoassets are not regulated by the FCA and should also make clear that investments are not protected by financial compensation schemes.
To get an understanding on how to utilize your allowances so you pay less tax, speak to a Financial Adviser to see how they can help you.
