Home / Private Client

Legal News

Reminder to report and pay the correct tax liabilities on cryptoassets

Copyright © 2025 LexisNexis

Published on: 01 November 2022

Published by LNB News

LNB News 01/11/2022

Document Information

Issue Date: 01 November 2022

Published Date: 01 November 2022

Jurisdiction(s): England, Northern Ireland, Scotland and Wales

Article summary

HMRC have taken cryptocurrency more seriously with detailed updates to the cryptoassets manual in recognition that it is property for inheritance tax, it is not gambling for capital gains tax. Exchanges, gifts and sales must be reported for capital gains tax. If cryptocurrency is used to pay salary, then there is liability for income tax and national insurance. HMRC have raised this with taxpayers by issuing nudge letters that related to the tax year 2020/2021 to encourage taxpayers to review their affairs and if necessary to amend tax returns. Cryptocurrency can generate a large number of transactions that may be difficult and time consuming to track if specialist software is not used. Taxpayers need to ensure that they have complete records in relation to cryptocurrency before the deadline for tax returns for 2021/22 is reached on 31 January 2023.

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit

Template for regulatory references given by SMCR firms and disclosure requirements

Template for regulatory references given by SMCR firms and disclosure requirements[Insert addressee details]Dear [insert name][It is our understanding that [insert name of prospective employee] [was an employee of yours between the dates of [insert dates as appropriate] OR is a current employee of