As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid potential penalties.
Anyone with cryptoassets should declare any income or gains above the tax-free allowance on a tax return.
Tax may be due when a person:
- receives cryptoassets from employment, if they are held as part of a trade, or are involved in crypto-related activities that generate an income
- sells or exchanges cryptoassets, including:
- selling cryptoassets for money
- exchanging one type of cryptoasset for another
- using cryptoassets to make purchases
- gifting cryptoassets to another person
- donating cryptoassets to charity.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
‘People sometimes forget that information about crypto-related income and gains need to be included in their tax return. Some people affected may not have had to do a tax return before, so it is important people check.’
Internet link: HMRC press release