“Many cryptocurrency holders, particularly casual investors, are not aware that they may be liable to pay tax on these assets, even if no money is exchanged or received. For example, you may need to pay tax when exchanging one crypto asset for another if you have made a gain.
“The annual reporting threshold is £49,200, so anyone with proceeds from crypto trades exceeding that limit in the tax year will need to submit a tax return, even if they have not made a gain. This means that someone exchanging £1,000 between different types of cryptocurrencies every week for a year would be required to report. The other trigger for reporting is capital gains exceeding a total of £12,300 for the year, so 10 gains of £1,231 would also be caught.”
“In the lead up to the 31 January deadline for self assessment, cryptoasset holders should consult HMRC guidance or a qualified adviser to determine whether they need to file a tax return, to avoid unexpected penalties.”
ENDS
Notes to editors:
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