Surveys show lack of awareness of tax liability among crypto investors
More than half of cryptocurrency investors have limited or no understanding of Capital Gains Tax and the associated tax liability on crypto transactions.
When surveyed, 34% of owners stated they had a good understanding of Capital Gains Tax (CGT), but 37% knew little or nothing and 22% were not familiar with it at all, according to research commissioned by HMRC.
Cryptocurrency is a decentralised form of finance, which many people purchase for investment purposes, so they are generally in scope of CGT.
HMRC has published guidance and advice on the taxation of crypto assets. However, only three in ten owners (28%) stated that they had seen this guidance.
Just over half (56%) of the cryptocurrency owners surveyed said they had received information on the tax treatment of crypto assets from at least one source.
Perhaps surprisingly, respondents noted high levels of contact with HMRC, with 53% of owners saying they had contacted HMRC at least once in the last year, although not necessarily about cryptoassets.
For more information on crypto investments, please contact Martin Back on 023 8046 1232.