Cryptoassets get a mention on the tax return

HMRC wants to raise awareness of the fact that cryptoasset transactions can mean tax bills - and there’s clearly some way to go.

In a recent survey, 41% of those who replied said they had no information about tax and their cryptoassets. In the light of this, it’s perhaps no surprise that the Spring Budget saw an announcement that the design of the self assessment tax return is going to change. From 2024/25, the capital gains tax pages will specifically ask for information on income and gains from cryptoasset transactions. This is meant to serve as a reminder that crypto transactions are within scope of the tax rules and should form part of the yearly review of the tax position.

The buying and selling of cryptoassets is usually treated as a personal investment. This brings it within the capital gains tax regime. However, with the capital gains tax annual exemption currently falling, more people are likely to come within scope of the tax. The exemption is currently £6,000 and by April 2024 – when the new look tax returns are issued - will be £3,000. If these changes are relevant to you, do please get in touch for an in-depth discussion.