NEW TAX LETTERS FOR CRYPTO INVESTORS IN UK
HMRC is looking to start sending crypto traders warning letters in order to confirm they have paid the right crypto tax. Crypto UK, a trade association, has confirmed this new routine will most likely come into play next year, as it has to be approved first.
HMRC told CryptoUK it took an “educational approach” in issuing the letters. It added its aim was to highlight the payments “people may not be aware of when considering if they have to pay any tax”. “If you receive a nudge letter it does not necessarily mean you have made an error on your tax return, but you need to ensure that you respond correctly to HMRC,” the representative said.
This innovation is believed to encourage crypto investors to make sure to pay the correct amount of capital gains tax (CGT) and other income tax, for example, on their crypto holdings. “It is likely that HMRC believes large amounts of CGT and income tax generated from cryptocurrency investments have been undeclared for tax purpos
