HMRC sends warning to cryptoasset users

    Simpson Wood
    21st February 2024
    Home » Categories » Tax » HMRC sends warning to cryptoasset users

    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:

            o    selling cryptoassets for money

    O    exchanging one type of cryptoasset for another

    O   using cryptoassets to make purchases

    O   gifting cryptoassets to another person

    O   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

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