UK taxpayers will need to file their profits from crypto separately when filing returns from 2025 onwards the government has revealed in its recent budget announcement.
The move is expected to raise an extra £10m per year for the public purse. The government also said it would work to “maximise the potential” of the metaverse, while managing downside risks to privacy, security and harms.
The move has been welcomed by the Chartered Institute of Taxation (CIOT), the leading professional body that analyses national tax policies.
Gary Ashford, the deputy president of the CIOT, said: “Highlighting the need to declare crypto asset transactions in the tax return will help raise awareness of people’s obligations in this area.”
Maryna Kovalenko, co-founder of crypto accounting firm Kova Tax said: “Adding the field to identify crypto specifically will increase awareness amongst self-lodgers of the need to declare their crypto gains.
“This will result in an increase in tax revenue collected and changes made to crypto taxation have likely been introduced to capture additional insights into how crypto is currently being declared, so the system can be better managed,”
UK bank NatWest recently added limits to the amount of money customers can transfer to crypto exchanges in order to protect them from cryptocurrency scams.
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