UK Government Tightens Crypto Regulations with New Tax Declaration Rule
The UK government has announced that taxpayers will now have to declare their cryptocurrency holdings separately on their tax returns.
This measure is expected to generate an additional 10 million British pounds (equivalent to US$12 million) in tax revenue for the country each year.
The announcement was made by Chancellor of the Exchequer Jeremy Hunt during the annual budget presentation on Wednesday.
According to the UK Treasury, the Self Assessment tax return forms will be modified to include a separate section for the reporting of crypto assets.
This new requirement will take effect starting in the tax year ending in April 2025.
The goal of this change is to ensure that individuals are paying the appropriate amount of tax on their cryptocurrency holdings.
The HM Revenue & Customs, a tax authority in the UK, has released a document stating that the newly implemented cryptocurrency reporting requirement will also apply to capital gains tax forms. This tax is levied on profits gained from the sale of investments.
Additionally, the UK government has expressed its intention to explore the potential of the metaverse while being mindful of the associated risks to privacy, security, and potential harm.
The government aims to maximize the benefits of this emerging technology while also implementing measures to mitigate any negative consequences that may arise.
