• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Taxation

Bitcoin investors face tax crackdown from HMRC

Bitcoin investors face tax crackdown from HMRC
  • Pedro Gonçalves
  • @PeterHSG
  • 13 August 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

HM Revenue & Customs is pressuring cryptocurrency exchanges to reveal customers' names and transaction histories, in a bid to claw back unpaid taxes.

The UK's tax office has sent letters over the last week to at least three exchanges- Coinbase, eToro, and CEX.IO - to inform the regulator about users' transactions in order to identify tax evasion, specialised outlet Coindesk reports. The US-based Coinbase has previously handed over the customer database to the US authorities last year under a federal court order.

Related articles

  • Tax authorities clamp down on cryptocurrencies
  • US IRS issues crypto tax form
  • HMRC targets crypto tax evaders
  • Australia anticipates A$3bn in cryptocurrency tax fines

One industry insider, speaking to Coindesk said: "HMRC is looking to work with exchanges when it comes to finding information on people who have been buying and selling crypto. I think they will only go back a couple of years, two or three years.

HMRC is looking to work with exchanges when it comes to finding information on people who have been buying and selling crypto"

"If they [HMRC] do only go back two or three years, I think the interesting thing here is, that the individuals who went into crypto very early on in 2012-13 will not be affected. The ones who probably made the largest gains won't be affected, it will be the people who came in around the time crypto peaked."

Cryptocurrencies are currently classified as capital assets in most jurisdictions. Based on HMRC's own classifications, which were only released in December, a taxable event occurs if users sell their cryptocurrencies, or swap them for other digital assets.

Because one of the main motivations for purchasing crypto is to speculate on the value, holders are liable to pay Capital Gains Tax in the U.K. Depending on income as well as capital appreciation, holders can face a tax bill of up to 20% off the value of a single transaction.

Most recently, the US Internal Revenue Service (IRS) sent letters to taxpayers who might have failed to report income and pay the resulting tax from cryptocurrency transactions. Warning them of stiff penalties if they fail to report income or pay tax on crypto holdings, the IRS said over 10,000 taxpayers are expected to receive letters by the end of August.

 

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Taxation
  • Cryptocurrencies
  • HMRC
  • Bitcoin
  • Crypto

More on Taxation

UK chancellor 'likely' to freeze lifetime allowance: reports

  • Taxation
  • 26 February 2021
Erratic Bitcoin leaves industry divided as Square invests $170m

  • Cryptocurrencies
  • 24 February 2021
Comment: The pandemic has dramatically complicated issues of tax residency

  • Comment
  • 15 February 2021
Comment: Are cryptocurrencies the new gold?

  • Comment
  • 19 January 2021
Comment: Why Bitcoin needs greater regulatory scrutiny

  • Cryptocurrencies
  • 15 January 2021
Back to Top

Most read

EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
Amati Global Investors launches strategic metals fund
Amati Global Investors launches strategic metals fund
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading