So, it looks like UK taxpayers will now need to report their crypto assets separately on tax forms. This change is expected to bring in an extra 10 million pounds, or about 12 million bucks, to the government every year.
Chancellor Jeremy Hunt announced this during the annual budget presentation on Wednesday. The UK Treasury clarified that starting from the tax year ending in April 2025, people will have to itemize their crypto asset amounts on the Self Assessment tax return forms. Pretty significant move if you ask me.
Just to clarify - it's not like they'll be forcing people to disclose their crypto-holdings, but it's just that taxable gains will be reported separately in the Self-Assessment form. So not much of a change and no idea how they have estimated this will bring an extra £10 mils to the budget. Maybe they're hoping that people who previously didn't bother to report profits from crypto gains will be more likely to do that if the form explicitly asks for such. Makes some sense tbh
This will be effective from April 2024
Thanks, hadn't heard of this news. I'm sure my accountant would've let me know since he's been handling my Bitcoin taxes for a while, but it's always nice to have a heads up. I'll probably seek some clarification from him even though he pretty much does everything for me, when I submit this years taxes, just to make sure I understand what exactly has changed. I've got until April 2024 to wrap my head around it anyhow.
According to the announcement made by Chancellor of the Exchequer Jeremy Hunt in the annual budget, U.K. taxpayers will be required to separately report their crypto assets on their tax forms. This new requirement is expected to generate an additional 10 million British pounds (US$12 million) per year in tax revenue.
The U.K. Treasury stated in a document published on Wednesday that changes will be made to the Self Assessment tax return forms, specifically requiring taxpayers to identify and report amounts related to cryptoassets separately. These changes will come into effect in the tax year that ends in April 2025.
The introduction of this new reporting requirement indicates the government's intention to ensure proper taxation of crypto assets and increase transparency in this growing sector. By separately identifying cryptoassets on tax forms, the U.K. government aims to ensure that individuals accurately report their crypto holdings and income for tax purposes. mcdvoice
It is important for U.K. taxpayers who hold cryptoassets to familiarize themselves with these upcoming changes and ensure compliance with the new reporting requirements when they come into effect.
UK Lords Pass Bill to Help Seize and Freeze Crypto Used for Crime
The bill, introduced in September, now enters its final stages in Parliament.
https://www.coindesk.com/policy/2023/07/04/uk-lords-pass-bill-to-help-seize-and-freeze-crypto-used-for-crime/
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The new law will allow to arrest and freeze the cryptocurrency, which will be used in crimes. Economic crimes and tax evasion are also included.
Cool and better than hunting the whole platform down. If the crypto used for crime is found in an exchange, it should be freezed and not the exchange.
If found in a mixer, it should be freezed and not the mixer. Although it will be difficult to track the particular coin when it has mixed with the pool of other coins. As time passes, government will have a better way to regulating cryptocurrency and get ride of crime in the system.
Fraudsters and criminals are also not stupid people and they will use mixers and mix transactions. In the darknet, services charge 5-6% of the amount for such a service. Honest users who buy cryptocurrency on exchangers usually suffer from blocking. Exchanges don't write their policies. If your payment contains 2% "dirty" bitcoins or your payment contains 20% "dirty" bitcoins, then 2 payments can be blocked.
It is true that the criminals are not stupid people, while I made the above comment I was centered on mixers and exchanges and forgot about the darknet. It is becoming clearer than more innocent people will be indicted. The real criminals might never be caught.
After I read this from the article
This made me think how someone who is holding coins securely and offline with privacy would be tracked that he owns crypto to be sized.
Not much of a surprise here, we couldn't expect crypto to have any preferential treatment. So if all kinds of assets that proceeded from crime could be seized, then crypto should not be an exemption.
Coinbase did phrase this one a bit oddly though:
It reads as if the authorities not only could seize crypto proceeded from crime, but also seize crypto that can help identify crypto from crime. Whatever that means.
I tried to verify it with the bill itself, but it's pretty lengthy: https://www.legislation.gov.uk/ukpga/2023/29/enacted
It's good that there are still exchanges without KYC
https://bitcointalk.org/index.php?topic=5414537
In the UK, the authorities do not want citizens to have ways to illegally buy and sell cryptocurrency:
https://www.crowdfundinsider.com/2023/07/209850-uk-financial-conduct-authority-updates-on-ongoing-eradication-of-illegal-crypto-atms/
The Financial Conduct Authority (FCA) has issued a statement on its ongoing crackdown of crypto ATMs in the UK that are not authorized.
"The FCA says it has investigated 34 locations in the UK since the start of the year, typically working with other law enforcement agencies. So far, during 2023, 26 crypto ATMs have been shut down. 18 sites suspected of operating crypto ATMs across the UK were inspected over May and June by the FCA, South West Regional Organised Crime Unit, Bedfordshire Police, Hertfordshire Police, and the Metropolitan Police.
Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA explained that if you use an illicit crypto ATM, you may be giving your money to criminals, and you could lose all of your money."
The law mandates all crypto firms which include bitcoin ATM service providers to register with FCA to ensure compliance with some measures that limits money laundering and terrorist financing. Without this registration, it is assumed that these ATMs are operating illegally. But from my research, no ATMs in the UK have been registered or certified by FCA. So all ATMs in the UK are operating illegally. I am beginning to wonder if the registration process is too stringent or if there are too many bureaucratic bottlenecks. This crackdown might be an indication that the government wants to limit the use of cryptocurrencyencies.
https://www.google.com/amp/s/amp.theguardian.com/technology/2023/feb/14/fca-and-west-yorkshire-police-raid-crypto-operators-in-uk-first