HMRC launches voluntary disclosure process for cryptoassets

On 29 November 2023 HMRC launched a specific disclosure process (tinyurl.com/hmrccryptodiscfac) for UK taxpayers to proactively report unpaid tax on income or gains from cryptoassets including exchange tokens non-fungible tokens (NFTs) and utility tokens. This is HMRC’s latest step to encourage taxpayers to bring their UK tax affairs up to date in relation to their past and current cryptoasset holdings having previously issued guidance to taxpayers (tinyurl.com/hmrccryptoguid) a new HMRC Cryptoassets Manual and capital gains tax nudge letters.

The context

The disclosure facility announcement should be seen in the context of other developments in this area.

HMRC is struggling to reduce the tax gap – the difference between tax paid and the amount that HMRC believes in theory should be paid. The 2021-22 tax gap remained stubbornly high at 4.8% of total liabilities or an estimated £35.8bn of unpaid...