Taxpayers in the UK will have to report cryptocurrency assets separately in their tax documents for the 2024-25 tax year, according to the Treasury’s recently published Spring 2023 Budget.
New criminal offenses planned by UK authorities to combat tax avoidance
Amid chaos in the banking sector following the collapse of Silicon Valley Bank’s UK subsidiary, Chancellor of the Exchequer Jeremy Hunt delivered the 2023 Spring Budget on Wednesday. Hunt, who previously dealt with the bank’s failure, told BBC reporters that the closure of the UK financial institution did not pose any immediate danger to the UK financial system. The budget, published by the Treasury, discusses the decisions the UK government has taken to “restore economic stability, support public services and lay the foundations for long-term growth.”
The budget also discusses tax and spending and specifically addresses “tackling drivers of tax avoidance”. The UK government plans to introduce new criminal offenses for tax evaders and will consult on the issue soon. “The government will also consult on speeding up the disqualification of directors of companies involved in promoting tax evasion, including those who exercise control or influence over a company,” according to the state budget.
In addition, the Treasury document mentions changing the UK’s self-assessment tax forms to account for cryptocurrency assets. “The government is introducing changes to tax return forms that require amounts relating to cryptocurrency assets to be separately identified,” the Treasury explains. “The changes will be implemented on the tax forms for the tax year 2024-25.” In the UK, tax returns are due on 31 January each year. UK taxpayers use the Government Gateway Service to submit their tax returns, and cryptocurrency assets must be listed separately under the new rule.
The budget from the British Chancellor of the Exchequer and Chancellor of the Exchequer follows US President Joe Biden’s recently presented annual budget for 2024, which also includes proposed tax policies aimed at cryptocurrency investors. Biden’s budget aims to eliminate similar exchange provisions, also known as Section 1031, from the Internal Revenue Code. The president’s administration believes that closing the so-called loophole will prevent the “ultra-rich” from taking advantage of the similar exchange provision.
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What do you think of the UK and US government’s proposed tax policy changes regarding cryptocurrency assets? Share your thoughts in the comments section below.
Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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