HMRC has recently launched a new campaign with a specific disclosure process, encouraging people to disclose unpaid tax on crypto assets (such as exchange tokens, NFTs and utility tokens).
HMRC research, which was published back in July 2022, found 10% of the adult population in the UK population held crypto assets. The introduction of the disclosure facility emphasises the concern HMRC has that many crypto asset owners may not be aware of their obligations and therefore have failed to disclose their taxable gains.
The tax treatment of crypto assets can be complex but generally profits or losses buying and selling of exchange tokens are taxable as capital gains but in very exceptional circumstances buying and selling crypto may amount to a trade for tax purposes.
If you have sold crypto for a profit, this might have reporting and tax obligations. Please ask us for advice as we are here to help.