ATT welcomes new cryptoasset transactions requirement for tax returns
The Association of Taxation Technicians (ATT) has welcomed the Chancellor’s announcement that from 2024-25, taxpayers will need to separately identify income and gains arising from transactions in cryptoassets on their Self-Assessment returns.
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Senga Prior, chair of ATT’s Technical Steering Group, said: “We are pleased to see that the Self-Assessment tax return will start to ask specific questions about cryptoassets for the 2024-25 tax year. There has been significant growth in recent years in the number of people buying, selling and investing in these virtual assets, and not everyone is aware that income and gains from such transactions are taxable. “We would encourage HMRC to help raise awareness of the taxable nature cryptoassets via channels such as social media and YouTube. “The changes will also coincide with the point at which the annual exemption for Capital Gains Tax is scheduled to drop to £3,000. The annual exemption is currently £12,300, so this change is likely to bring far more people into Self-Assessment. “Separately identifying income and gains from cryptoassets will also make it much easier for HMRC to enforce compliance. HMRC has previously received information from crypto exchanges about transactions made by UK taxpayers, and could start to receive more information if an international framework for reporting on cryptoasset transactions is agreed in future. Having separate boxes for cryptoasset transactions on the tax return should make it easier for HMRC to spot those who have failed to report income or gains. “We are disappointed that the changes couldn’t have been introduced sooner, given that 2022-23 tax returns have not yet been released. It will therefore be another two years before HMRC starts to get information that it can use.” Notes for editors 1. Guidance on the taxation of cryptoassets is available in HMRC manuals. |
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