tldr; UK crypto investors may owe taxes even without receiving warning letters from HM Revenue & Customs (HMRC). HMRC has increased its efforts to track undeclared digital asset income, issuing nearly 65,000 ‘nudge letters’ in the 2024–25 tax year. Tax experts warn that HMRC uses exchange data and international agreements to identify noncompliance. Investors are advised to proactively report crypto activity, as failure to do so can lead to penalties. Taxable activities include token swaps, staking, and airdrops, with complex calculations required for gains.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
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tldr; UK crypto investors may owe taxes even without receiving warning letters from HM Revenue & Customs (HMRC). HMRC has increased its efforts to track undeclared digital asset income, issuing nearly 65,000 ‘nudge letters’ in the 2024–25 tax year. Tax experts warn that HMRC uses exchange data and international agreements to identify noncompliance. Investors are advised to proactively report crypto activity, as failure to do so can lead to penalties. Taxable activities include token swaps, staking, and airdrops, with complex calculations required for gains.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.