HMRC taxation of cryptoassets UK

05 Apr 2022, 17 mins ago

I’ve now received a letter from HMRC talking about my cryptoassets – what do I do?

Gherson Solicitors are increasingly receiving enquiries from individuals who have received a nudge letter from HMRC about their cryptoassets.

This is an issue that Gherson have previously foreseen. Indeed, a 21 October 2021 Financial Times article entitled “Tax “nudge” letters to be sent to crypto investors” reported how HMRC planned to send cryptoasset holders letters encouraging them to review whether they have paid sufficient capital gains tax, and, if applicable, income tax on their cryptoasset holdings.

The article also references the freedom of information request sent by Gherson Solicitors early last year where it was confirmed that:

HMRC has used powers provided by Parliament to gather information from entities about their customer’s transactions in, and holdings of, cryptoassets;

HMRC has exercised rights under International Treaties to request information from other tax administrations to obtain information held by cryptoasset exchanges and data holders outside the UK

Indeed, this is an issue that Gherson Solicitors have been alive to as they wrote a blog back in April 2021 titled “Tax and cryptoassets – Have you been making significant gains HMRC will probably be aware”.

Tax advice and tax investigations

In light of the fact that there will be individuals and businesses who have made significant gains during the last six months (and indeed further back), HMRC will undoubtedly continue to make use of the wide range of information powers to gather information from this jurisdiction and beyond.

Therefore, if you hold cryptoassets through an exchange, it is very likely that HMRC will have received information regarding those holdings (or if not already, at some point in the future).

If you are in the fortunate position of sitting on significant gains and require guidance on the tax position, then Gherson is able to offer expert specialist tax advice.

In addition, if you have been approached by HMRC (including through receiving a nudge letter), or if you feel an approach to HMRC is necessary, then Gherson’s specialist tax team alongside their white collar-crime and investigations team can provide guidance on the best response or approach.

If you have any queries relating to the blogs published or are interested in talking to us about your specific circumstances, please do not hesitate to contact us for advice, send us an e-mail, or alternatively, follow us on TwitterFacebook, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2022