UK Targets Crypto Users: Penalties Looming for Unpaid Taxes

• U.K. Government's Call to Crypto Users for Voluntary Tax Disclosures
• Guidelines for Crypto Tax Disclosures
• The U.K.'s Position on Crypto Tax

U.K. Government's Call to Crypto Users for Voluntary Tax Disclosures

The U.K. government urged cryptocurrency users to willingly declare any outstanding capital gains or income taxes on Wednesday in order to evade penalties. In addition, they released a guidance document to aid in the payment process.

Guidelines for Crypto Tax Disclosures

The required tax disclosures should encompass capital gains or income accumulated from exchange tokens like bitcoin (BTC), non-fungible tokens (NFTs), and utility tokens.

For users who have already submitted their cryptocurrency tax declarations to the U.K. Treasury, there is a 30-day window from the disclosure date to complete all necessary payments. If payments are not made within this period, the Treasury will initiate measures to retrieve the funds and users might be subject to penalties.

The U.K.'s Position on Crypto Tax

The U.K. has been working on clarifying its position regarding crypto tax. Back in 2021, the Treasury released a guide designed to assist U.K. crypto holders in their tax payment procedures. The country made a further announcement in March this year stating that individuals will need to specify their cryptocurrency holdings separately in their tax forms.

Edited by Jonathan Stoker