HMRC issues a reminder to investors in cryptoassets, stressing the necessity of declaring any income or gains surpassing the tax-free allowance on a tax return.

Tax Obligations for Crypto Investors:

Investors holding cryptoassets like Bitcoin are obligated to pay taxes on any income or gains they accrue. Most individuals trading in cryptoassets will fall under capital gains tax for activities such as selling cryptoassets for fiat currency, exchanging one cryptoasset for another, gifting cryptoassets, or using them to purchase goods or services.

Exceptional Circumstances:

In certain cases, individuals engaging in crypto transactions may be classified as traders, subjecting them to income tax rather than capital gains tax.

Reporting Requirements:

For income or gains related to cryptoassets in the tax year 2023-24, they should be included in your self-assessment tax return. If you have gains from the previous tax year (2022-23), there is still an opportunity to amend your previously submitted tax return.