The UK government has announced that taxpayers will need to separately report their cryptocurrency holdings on their tax returns, a move that is expected to generate an additional 10 million British pounds ($12 million) per year for the public purse. The new requirement will come into effect for the first time in the tax year ending in April 2025.
New Tax Reporting Requirement
The announcement was made by finance minister Jeremy Hunt in the annual budget on Wednesday. The UK Treasury stated that the changes to the Self Assessment tax return forms will require amounts in respect of crypto assets to be identified separately.
This change will apply to forms for capital gains tax, which are payable when investments are sold at a profit. According to a document published by the tax authority HM Revenue & Customs, the new requirement will apply to crypto assets held in the form of digital currencies or tokens.
Also Read: UK to Implement New Regulations for Crypto Assets After FTX Bankruptcy
Maximizing the Potential of the Metaverse
The UK government has also expressed its interest in maximizing the potential of the metaverse while ensuring the privacy, security, and minimizing harms. The metaverse is a virtual environment in which people can interact with a computer-generated world, often using virtual reality or augmented reality technology.
This move by the UK government to require taxpayers to separately report their crypto assets is part of the government’s plan to tackle tax evasion and raise revenue. With the growing adoption of cryptocurrencies, this new requirement will provide greater transparency and make it easier for the government to track taxable income generated from digital assets.
