Published: 22/11/2021 By Hannah McCormackWith the rise of the increasingly popular crypto currency and more and more people having cryptoassets it wasn’t going to be long until HMRC got involved to ensure the correct amount of tax is being paid on these new investments. HMRC have devised a cryptoassets manual which sets out how the new ‘crypto’ is taxed (this is regularly updated).
For reference HMRC treats all Cryptocurrency as property rather than currency and money. Therefore, it is subject to Capital Gains Tax or Income Tax but only on the part that a profit is made on.
To ensure investors are aware of their liabilities HMRC have been writing to cryptoasset holders. These letters confirm the asset holders must disclose their gains on any crypto transactions. HMRC suggest to submit any disclosures via their Digital Disclosure Service which can be found here .
We also advise you review all your crypto transactions to ensure you are fully aware of what if anything is owed, if in doubt please don’t hesitate to give us a call and we can talk you through your Capital Gains Tax or Income Tax liabilities.