Declaring your cryptoasset gains

Cryptoasset investors with income or gains above the tax-free allowance should declare them on their tax return.

HMRC has made it clear that individuals holding cryptoassets, like Bitcoin, need to pay tax on any income or gains that have been made. 

Who does this apply to?

If you’re investing in cryptoassets, you need to pay capital gains tax on the following activities:

• Selling cryptoassets in exchange for regular currency.

• Exchanging cryptoassets for other cryptoassets.

• Gifting cryptoassets to anyone other than a spouse or civil partner.

  Using cryptoassets to buy goods or services.

On rare occasions, if you’re transacting in cryptoassets you could be viewed as trading. This means you’ll be subject to income tax rather than capital gains tax.

How to make a declaration

Any income or gains on cryptoassets that relate to the tax year 2023-24 can be added to your self-assessment tax return. If you have gains relating to 2022-23, there’s still time for you to amend a previously submitted return.

For undeclared gains that relate to previous tax years, HMRC’s launched a voluntary disclosure service so that you can still report them.  

It’s not compulsory for you to use this service and, if you have more complex tax affairs or undeclared gains not related to cryptoassets, there are other reporting routes you could consider. 

For guidance on the best reporting route for your situation, or for help declaring your cryptoasset income or gains, give our experts a call.