As the use of cryptoassets continues to grow HMRC is warning people to check if they need to complete a self assessment tax return for the 2022/23 tax year to avoid potential penalties.

Anyone with cryptoassets should declare any income or gains above the tax-free allowance on a tax return.

Tax may be due when a person:

  • receives cryptoassets from employment, if they are held as part of a trade, or are involved in crypto-related activities that generate an income
  • sells or exchanges cryptoassets, including:

o    selling cryptoassets for money

O    exchanging one type of cryptoasset for another

O   using cryptoassets to make purchases

O   gifting cryptoassets to another person

O   donating cryptoassets to charity.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘People sometimes forget that information about crypto-related income and gains need to be included in their tax return. Some people affected may not have had to do a tax return before, so it is important people check.’

Internet link: HMRC press release