HMRC is contacting people it believes may have underpaid income tax or capital gains tax (CGT) on crypto transactions.
The agency is sending letters to individuals who have engaged in crypto asset activities to ensure they’re reporting the transactions.
Crypto assets are treated in the same was as other assets and are subject to CGT if they’re exchanged for another crypto asset, such as bitcoin or a non-fungible token (NFT), converted back to currency, or used to buy goods or services.
Income tax may be due if the crypto assets generated an income, were traded, or income was received in the form of crypto. National insurance contributions (NIC) may also be due if the crypto assets were received as payment for employment.
For the year 2024 to 2025, there is a dedicated crypto asset section on self-assessment return (form SA108). HMRC’s disclosure service can be used to declare crypto assets on returns that can no longer be amended.
As well as sending the letters, HMRC’s Wealthy and Mid-sized Business Compliance team are contacting individuals by email or text message. A social media advertising campaign will also explain the tax implications of crypto transactions.
An HMRC YouTube video shares more information about how different types of crypto are treated for tax purposes.
