27th April 2023
Danielle Ford, Partner and Head of Tax Disputes & Resolutions, has featured in the FT’s ‘Your Questions’ feature, in regards to what an individual should do if they receive a nudge letter in relation to cryptocurrencies.
We have previously commented on HMRC’s approach to crypto assets here, making those who hold cryptocurrency and crypto assets aware of their obligations in regards to reporting to HMRC. In HMRC’s view, cryptocurrencies are a chargeable asset and should be treated as such. The pitfall often occurs when individuals do not seek professional advice on how their crypto assets could affect their tax position, since multiple transactions and reinvestment could trigger Capital Gains Tax (CGT).
The key takeaway from Danielle’s feature, is that those holding crypto assets are simply not aware of the tax consequences, which is why it’s worth seeking expert advice for any gains or losses made.
You can read Danielle’s answer in full in the FT article here (subscription needed).
If you need further advice, please get in touch with Danielle here.