New disclosure facility targets cryptoasset income

HMRC has launched a new campaign to encourage people to disclose any unpaid tax on crypto assets such as exchange tokens non-fungible tokens and utility tokens.

HMRC considers the profit or loss made on buying and selling of exchange tokens as within the charge to capital gains tax and only in exceptional circumstances accepts that this amounts to a trade for tax purposes.

The department notes that ‘dealing with cryptoassets can be complicated’ and suggests that individuals who wish to come forward may wish to appoint an adviser or use a cryptoasset commercial calculator to help with the calculation.

Dawn Register head of tax dispute resolution at BDO said: ‘The launch of this new disclosure facility highlights HMRC’s concern about non-compliance among crypto asset owners and underlines its determination to recover unpaid tax.

‘As ownership of crypto assets tends to be concentrated among...