The UK government has announced that it plans to recoup capital gains tax income, gained from digital assets by asking for users of cryptocurrencies, NFTs and utility tokens to voluntarily disclose their earnings.
HM Revenue & Customs published a report on November 29th 2023,advising cryptocurrencies holders, that to avoid potential financial penalties they should voluntarily disclose any unpaid income from digital assets.
In the report it stated that UK crypto holders should backdate for all years that earnings have been made from digital assets.
The report also stated..
“Those who have taken “reasonable care” in managing tax affairs will need to pay taxes for 4 years, while those who “did not take care” have to pay what they owe for 6 years. Meanwhile, individuals that “deliberately misled HMRC” will have to pay taxes owed over a maximum of 20 years.
Those who have made a disclosure are granted a 30-day timeframe to pay all outstanding taxes on digital assets. Failure to meet this deadline could result in repercussions, including actions taken by the Treasury to recover unpaid amounts.”
The UK government also stated that it plans to update the current self-assessment tax forms so that they have a dedicated section for cryptocurrency holders to declare their gains.
