We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA

HMRC issues new guidance around cryptoassets

Please see HMRC’s guidance on cryptoassets to check you’ve declared everything correctly:

Check if you need to pay tax when you sell cryptoassets

Check if you need to pay tax when you receive cryptoassets

Reporting unpaid tax on cryptoassets

‘Tell HMRC about unpaid tax on cryptoassets’ is a service for customers who have identified a discrepancy that has led to unpaid tax in previous years and who want to make a voluntary disclosure.

If you have unpaid tax that relates to 2022 to 2023 or 2023 to 2024 tax year you will not be able to use the above service. Please follow the guidance at ‘Report and pay your Capital Gains Tax’.

What do I need to do if I dispose of cryptoassets?

HMRC treats cryptoassets largely the same way as other assets. If you dispose of cryptoassets, you may have to pay Capital Gains Tax (CGT) on any gains that you make.

What is a ‘disposal’?

You make a disposal of cryptoassets whenever you:

  • sell cryptoassets for fiat currency such as pounds or dollars – gains from these transactions are taxable, even if the money you make is not ‘withdrawn’ from the cryptoasset exchange
  • exchange one cryptoasset for another, for example, exchanging Bitcoin or Ether, or using Bitcoin to buy a non-fungible token (or NFT) – gains from these transactions are taxable, even if you haven’t converted your cryptoassets back to fiat currency
  • use cryptoassets to buy goods or services
  • give away your cryptoassets to someone who is not your spouse or civil partner – you will be treated as having received the pound sterling value of the cryptoasset you give away, even if you did not actually receive anything.

What do I need to do if I receive cryptoassets?

Income tax and national insurance contributions may be due where you were involved in cryptoasset related activities that generate an income (for example, lending and staking of cryptoassets) or from an employment.

This can be a complex area of tax and you may want to ask an adviser for help. There’s also a detailed Cryptoassets Manual guidance tool.

If you wish to talk about this matter with HMRC, you can:

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More information

Read ACCA’s technical article and factsheet on accounting for cryptocurrencies