Tax reporting deadline is approaching, UK crypto investors must abide to new rule

26 Jan, 2019 | Updated: 26 Jan, 2019
by Fifi Arisandi
Regulation
Tax reporting deadline is approaching, UK crypto investors must abide to new rule

Crypto investors in the UK must abide to the new tax regulation for crypto assets created by Her Majesty’s Revenue and Customs (HMRC).

As the January 31st deadline to submit tax returns is approaching, crypto investors in the UK should pay attention to the guideline on crypto assets provided by Her Majesty’s Revenue and Customs (HMRC).

According to HMRC, when a crypto investor sold his/her crypto asset, whose value’s appreciating, he/she is accountable for paying the Capital Gains Tax (CGT) on the earned profit.

The CGT, however, can be exempted if it’s below GBP 11,300 or around $14,625, as reported by 21cryptos.

Additionally, HRMC also stated that the CGT percentage on chargeable assets may be as high as 20%, which depends on if an investor pays the basic or higher rate income tax.

Last but not least, crypto traders are expected to report their gains and losses, via a self-assessment system that’s specifically created for tax purposes, with details, such as the type of cryptocurrency asset, date of transaction, transaction type, number of units, value of the transaction, cumulative total of units, bank statements and wallet addresses are required.

Read more: Crypto tax status is "a big hurdle to broader adoption": Libra CEO

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