Crypto assets to become a separate category in UK tax forms

UK Government

The UK government recently announced in the national budget released by His Majesty’s Treasury the successful amendment of tax forms regarding crypto assets. This update means that individuals, businesses and companies that currently own any crypto assets will now be able to declare them, separately from other assets, on all their self-assessment tax forms. HM Treasury Secretary, Rishi Sunak, made the following public statement during the announcement of this milestone: "The UK is one of the first countries to introduce regulations and generalize its tax policies on crypto assets. We hope this change in regulations will provide clarity to individuals and businesses looking to invest in crypto either as a method of payment, payment of goods and services, or as investments." Crypto asset regulations, which were implemented in January of 2020, require all owners of crypto assets to declare their holdings on their tax forms. The government has provided guidance and resources on the types of information crypto holders are required to declare so that their taxes are accurate. The amendment to the self-assessment forms makes it even easier to accurately reports taxes. The HM Treasury department encourages citizens that own crypto assets to seek professional advice when filing their taxes to ensure accuracy and compliance with tax regulations. Furthermore, the department advises that all citizens who haven't reported their crypto asset holdings in past tax returns to do their best to identify any foreign exchange gains or losses that may result from their holdings. HM Treasury Secretary Rishis Sunak concluded by saying, "This amendment to the self-assessment tax forms is just the beginning of the UK's commitment to developing a more transparent and modernized regulations regarding crypto assets. We are confident this change will help to clarify the rules, regulations and tax reporting requirements for all those interested in using crypto as a method of payment, payment of goods and services, or as investment opportunities." The recent update to the self-assessment tax forms is a major milestone for the UK and provides clarity and support to the crypto community at large. It is estimated that the tax forms will begin to take effect in the upcoming tax year. -END-