Crypto traders issued with nudge warning

HMRC wealthy team is writing to crypto investors whom it suspects have failed to pay the correct tax on their gains reports the Chartered Institute of Taxation (CIOT). A small number of letters were sent out in the first half of August with a larger batch in September.

The letter advises recipients on what action to take if necessary and points them towards the crypto assets disclosure service. Anyone who believes they have nothing to pay is asked to contact HMRC to explain why and provide any supporting information.

Gary Ashford chair of CIOT’s crypto assets working group said: ‘Many investors may be unaware that profits from crypto assets are subject to income tax or capital gains tax like any other asset depending on how they’re held.’

Selling lending or ‘staking’ crypto assets – or potentially even just transferring...