Shorter Reads

Bit-coining it in: HMRC waiting for cryptocurrency windfall?

1 minute read

Published 3 October 2018

Share

Key information

  • Services
  • Private Wealth
  • Tax & Estate Planning
  • Trusts

The Association of Taxation Technicians have warned individuals of the approaching time limit to register for self-assessment for the first time, specifically reminding people that profits and gains made on cryptoassets will need to be disclosed and tax may be due.

It is also worth considering whether losses could be reported to mitigate tax paid on other income or gains.

Individuals will need to consider (and HMRC will presumably be very interested to know) whether they are trading or investing in cryptoassets, the former being subject to income tax rather than capital gains tax and therefore taxed at a much higher rate.

Given the increase in value of cryptoassets and their popularity in recent years, it will be interesting to see how much revenue HMRC make from cryptoasset taxation and what active steps they may take to ensure compliance if they believe there is a under-reporting of liabilities.

https://www.att.org.uk/technical/news/press-release-cyrptoassets-five-days-left-register-real-taxes-your-virtual-assets

Message us on WhatsApp

Related latest updates
PREV NEXT

Arrow Back to Insights

Shorter Reads

Bit-coining it in: HMRC waiting for cryptocurrency windfall?

Published 3 October 2018

Associated sectors / services

The Association of Taxation Technicians have warned individuals of the approaching time limit to register for self-assessment for the first time, specifically reminding people that profits and gains made on cryptoassets will need to be disclosed and tax may be due.

It is also worth considering whether losses could be reported to mitigate tax paid on other income or gains.

Individuals will need to consider (and HMRC will presumably be very interested to know) whether they are trading or investing in cryptoassets, the former being subject to income tax rather than capital gains tax and therefore taxed at a much higher rate.

Given the increase in value of cryptoassets and their popularity in recent years, it will be interesting to see how much revenue HMRC make from cryptoasset taxation and what active steps they may take to ensure compliance if they believe there is a under-reporting of liabilities.

https://www.att.org.uk/technical/news/press-release-cyrptoassets-five-days-left-register-real-taxes-your-virtual-assets

Associated sectors / services

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (no calls)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up
    ExpandNeed some help?Toggle

    Get in touch

    Get in touch using our form below.