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:

• Selling cryptoassets for money
• Exchanging one type of cryptoasset for another
• Using cryptoassets to make purchases
• Gifting cryptoassets to another person
• 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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