The UK government has implemented measures to prevent tax evasion from cryptocurrency transactions such as Bitcoin, Ethereum, or XRP.
Cryptocurrency users must fully declare personal information to service providers to ensure accurate tax compliance under the new regulations, expected to take effect from January 2026.
MAIN CONTENT
The UK applies mandatory detailed reporting regulations to tighten tax collection on cryptocurrency transactions.
Failure to provide information or providing false information will incur a fine of up to £300.
The government expects to collect around £315 million from cryptocurrency taxes by 2030.
How do the new regulations in the UK affect cryptocurrency trading?
The new regulations require traders to provide accurate personal information for cryptocurrency services to ensure full tax compliance.
James Murray, Secretary to the Treasury of the UK, affirmed that these measures will 'not allow tax evaders any place to hide,' helping to increase budget revenue for essential public services such as health and police.
We act quickly and decisively to close every tax loophole, ensuring fairness and increasing budget revenue to serve the community.
James Murray MP, Secretary to the Treasury, 2024
This regulation also imposes heavy penalties on service providers who fail to timely report transaction information and clients' tax numbers.
What benefits is the cryptocurrency tax policy expected to bring to the national budget?
According to estimates from the UK Treasury, the Cryptoasset Reporting Framework rules will help collect around £315 million by 2030.
Rachel Reeves, Chancellor of the Exchequer, emphasized that strengthening tax collection from the cryptocurrency market is a way to ensure financial fairness, while not ruling out the possibility of increasing taxes on high-income groups and businesses in the future.
We have increased taxes on the wealthy and businesses to ensure the budget is sufficient to maintain essential services.
Rachel Reeves, Chancellor of the Exchequer, 2024
How do cryptocurrency users react to the new tax regulations?
Cryptocurrency users in the UK are required to provide information such as full name, date of birth, address, and tax number when conducting transactions on buying and selling digital asset platforms.
Many believe this regulation benefits the government because regardless of whether they make a profit or loss in trading, the tax is still applied fairly or does not have a significant impact if they incur losses.
However, some individuals question why they have to pay tax on profits from that activity after having already paid taxes on the costs of mining equipment.
What detailed information needs to be provided under the new regulations?
Customers and businesses using cryptocurrency services must provide complete personal information including name, date of birth, residence address, and country if not living in the UK, along with a valid tax number.
For businesses, it is necessary to declare the legal name and accurate business address to ensure transparent tax traceability.
What are the penalties for violating cryptocurrency tax regulations?
Traders who do not provide information or provide inaccurate information will be fined up to £300. Service providers will also be penalized for not responsibly reporting fully.
This aims to create compliance pressure, enhance transparency, and help the tax authority detect tax evasion in a timely manner.
Frequently asked questions
When will the new tax regulations take effect? Starting from January 2026, cryptocurrency traders in the UK must provide accurate personal information for cryptocurrency services.
According to the UK Treasury, 2024 If sufficient information is not provided, how will users and providers be penalized? Both users and service providers may be fined up to £300 if they intentionally evade taxes or report incorrect information.
According to HMRC regulations, 2024 What personal information is required for cryptocurrency tax reporting? Full name, date of birth, residence address, country (if not living in the UK) and tax number are mandatory data.
Cryptoasset Reporting Framework regulations, 2024 How much does the government expect to collect from cryptocurrency taxes? An estimated £315 million by 2030, according to a public announcement from the UK Treasury.
UK Treasury, 2024 Do users have to pay taxes when they incur losses from cryptocurrency transactions? No, taxes only apply to actual profits; users are not taxed on losses.
Tax expert analysis, 2024
Source: https://tintucbitcoin.com/anh-quoc-siet-chat-tron-thue-tien-so/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
