HMRC launches Cryptoassest tax disclosure service

A new initiative by HMRC allows taxpayers to voluntarily report unpaid tax on cryptoassets including exchange tokens, non-fungible tokens, and utility tokens.

Select taxpayers engaged in cryptoasset transactions who have not met their tax obligations have been contacted by the tax authority.

HMRC's 'real-time' capital gains tax service or self-assessment returns must be used to report transactions incurring capital gains during the 2022/23 and 2023/24 tax years.

Users must enter their government gateway credentials, along with specific information, to access the facility.

According to their past compliance with tax obligations regarding cryptoasset income or gains, taxpayers must determine how many years they need to declare unpaid taxes. There is a possibility of a 20-year disclosure period.

Accordingly, HMRC advises those uncertain about disclosure to seek specialist advice. Separate guidance has been issued on taxing cryptoassets.

UK's commitment to join Cryptoasset Reporting Framework (CARF) is reflected in the launch of this disclosure facility. Financial authorities can exchange information automatically on crypto exchanges using the CARF.

For more info go to the following link: https://www.gov.uk/guidance/tell-hmrc-about-unpaid-tax-on-cryptoassets