This article briefly:
The UK taxman is offering cryptocurrency investors the opportunity to report any unpaid gains from taxable events involving cryptocurrencies and NFTs.
Due to the complexity of taxable events of cryptocurrency transactions over the years, experts recommend defaulters to consult experts.
The UK government is reducing corporate and personal taxes, but appears to be tightening sanctions on cryptocurrency tax evaders following a statement in May.
The UK tax authority has launched a new voluntary disclosure process for those who fail to report their cryptocurrency gains. Following recent actions against corporate tax evaders, HMRC wants the public to report income from cryptocurrency trading tokens, non-fungible tokens (NFTs) and utility tokens.
The disclosure follows the U.K.’s previous revelation of a plan for a non-crypto tax, after the government estimated that between 55% and 95% of cryptocurrency holders could be violating tax laws.
Cryptocurrency taxpayers should seek advice
Some advisers said taxpayers should seek advice before using disclosure tools. They should get expert advice because of the complexity of crypto taxes and the fact that several years' worth may not be paid. For example, it may not be clear to cryptocurrency holders which crypto asset activities gave rise to taxable gains.
Daniel Howitt, head of crypto tax software provider Recap, said cryptocurrency investors could use the opportunity to understand their obligations before tax authorities have better data. Richard Jones, senior technical manager of policy at ICAEW, said the rapid development of the asset class has left regulators playing catch-up.
Despite tax cuts, Sunak targets crypto tax evaders
British Prime Minister Sunak recently enacted a series of tax cuts to encourage investment in the U.K. Individuals may also see significant cuts, putting about $570 back into their bank accounts each month, Sunak told Bloomberg’s Francine Lacqua in a recent interview.
But at the same time, the government is looking to crack down on tax evasion, especially in the area of cryptocurrency taxes. In May, the government considered giving HMRC the power to seize digital assets in the wallets of corporate tax evaders. The company said it would discuss with wallet providers how to achieve this goal.
The government also recently announced that it will require cryptocurrency exchanges to provide customer information starting in 2027. These records will give the government more insight into cryptocurrency spending habits, provided their requests are within the law.
What do you have to say about the UK government’s crackdown on cryptocurrency taxation? #英国 #加密税