29 January 2024

Navigating Crypto Taxation: HMRC’s Urgent Reminder

With the self-assessment deadline looming, HMRC has sent out a reminder urging individuals who may have invested/traded in crypto assets to check if they need to report transactions. Does this affect you?

HMRC is concerned that individuals who sell or exchange crypto assets through online exchanges may not be aware that they need to file a tax return, particularly as a charge can arise even if they exchange one token for another and no actual physical money is withdrawn. A return will be needed if capital gains, including any arising from transactions in crypto assets, exceed £12,300, or if aggregate disposal proceeds for the tax year exceed £49,200.

HMRC says that you should consider your position if you have made transactions involving crypto assets, including:

  • selling crypto assets for money 
  • exchanging one type of crypto asset for another
  • using crypto assets to make purchases 
  • gifting crypto assets to another person 
  • donating crypto assets to charity. 

In some circumstances, the receipt of crypto assets may be liable to income tax, e.g. where received from an employer or mining activity.
For more assistance on this matter please see HMRC online guidance here or contact your accountant.

More from the blog