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Crypto assets to become separate category in tax forms

  • April 17, 2023
  • 2 min read
Crypto assets to become separate category in tax forms

As the UK government gradually starts to develop its own framework on crypto, the Treasury is introducing a separate category for crypto assets in tax return forms. This should appear in 2024-25. This was announced as part of the national budget on the 15th March. It announced the amendment of the self-assessment forms for crypto assets.

In the table of anticipated expense and revenue of the national budget, the crypto assets line will appear only from 2025-26. This means that British taxpayers will, for the first time, need to declare them in the previous tax year, 2024-25. At the moment, the Treasury doesn’t provide any specific numbers of anticipated budget revenues  from this category.

The changes were welcomed by the Chartered Institute of Taxation (CIOT), the country’s leading professional body that analyses national tax policies. “Highlighting the need to declare crypto asset transactions in the tax return will help raise awareness of people’s obligations in this area,” Gary Ashford, the deputy president of the CIOT said. However, he highlighted the need for additional measures to counter the “widespread ignorance of tax payments and reporting requirements for crypto.”

In March, the Financial Conduct Authority (FCA) reported to the Treasury that it is “midway through a quite ambitious reset” as the Financial Services and Markets bill passes through parliament. The bill would give the FCA new regulatory powers over the country’s cryptocurrency industry.

Previously, the FCA only had power to ensure crypto companies register with it and comply with anti-money laundering rules. An amendment was approved to enable it to regulate crypto under the existing promotion rules, making it very difficult for crypto firms to advertise to clients in the UK.

“This is of course an important milestone and will enable us to make substantial progress on the provisions within the Bill,” a Treasury spokesperson said, “including repealing and replacing burdensome pages of retained EU (European Union) law governing the sector, measures to embrace crypto asset technology, and measures to protect the consumer.” 

 

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