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flag UK crypto investors may face penalties for not reporting gains over £3,000 annually, HMRC warns.

flag HMRC has warned UK cryptocurrency investors they may face penalties for failing to report capital gains, stressing that profits from selling, trading, or gifting crypto—except to spouses, civil partners, or charities—count toward the £3,000 annual Capital Gains Tax allowance. flag Gains are calculated as the difference between purchase and sale prices, with special rules for pooled assets and connected persons. flag Taxpayers must report gains exceeding the allowance via Self Assessment or the real-time CGT service, maintain detailed records, and use HMRC’s Cryptoasset Disclosure Service for unpaid prior-year tax. flag The warning, shared via social media, highlights HMRC’s ongoing efforts to improve compliance in digital asset transactions.

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