Blockchain & Crypto

UK Tax Authorities Change the Way Crypto Profits Should Be Filed

The UK Treasury introduced changes to the Self-Assessment tax return forms so that crypto assets are identified separately

UK tax crypto

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Describing the Spring Budget 2023, UK Treasury announced that starting from the 2024-2025 fiscal year British taxpayers will have to separately report crypto assets on their tax forms.

The move is expected to bring an additional profit of 10 million British pounds (US$12 million) per year to the UK government.

Although the majority of UK taxpayers in Britain don’t file tax returns, as owed sums are deducted directly from their pay, about 12 million of the self-employed, high earners, people who need to declare investment income, as well as citizens with complex tax affairs regularly complete Self-Assessment forms.

The clarification from the UK tax authority HM Revenue & Customs explained that the change would apply to forms for capital gains tax, payable when investments are sold at a profit.

Back in 2020, the Financial Conduct Authority (FCA) revealed that 2.6 million Brits have bought cryptocurrency, with 27% of them using cryptocurrency to purchase goods and services. A year later, a survey conducted by triple-a.io showed that 6.2% of UK adults, or approximately 4.2 million people, were holding cryptocurrency.

Another research by Saxo Markets UK, the licensed subsidiary of Saxo Bank, revealed that 56% of investors planned to increase their investment allocation to the digital asset class in 2022, despite the risk of a cryptocurrency crash.

Starting Jan. 1 2023, foreign investors purchasing crypto through local UK investment managers or brokers are exempt from additional tax, as part of wider plans to make Britain a global hub for crypto asset technology, innovation and investment.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.