As the UK gradually transitions to its own comprehensive crypto system, the Treasury is introducing a separate category for crypto assets on tax forms. In 2024-2025, a separate line should appear in tax forms.
On March 15, HM Treasury released the National Budget Report for Spring 2023. The document reports on the change in the forms of self-assessment of cryptocurrency assets.
In the table of expected expenses and incomes of the republican budget, cryptocurrency assets, the numbers opposite the line of cryptocurrency assets appear only starting from 2025-26. This means that British citizens will have to declare them for the first time in the previous tax year, 2024-25. At the moment, the Treasury does not provide specific figures for expected budget revenues from this tax category – the figures in the table correspond to a nominal mark of 10 million British pounds (12 million dollars).
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The changes have been approved by the Royal Tax Institute (CIOT), the leading professional body that analyzes national tax policy. As CIOT Deputy President Gary Ashford stated:
“Emphasizing the need to declare transactions with crypto assets on a tax return will help raise people’s awareness of obligations in this area.”
However, he stressed the need for additional measures to counter “widespread disregard for tax and reporting requirements for cryptocurrencies.” According to Ashford, low-income cryptocurrency investors do not have a sufficient understanding of tax reporting.
Earlier in March, the Financial Conduct Authority (FCA) told the Treasury that it was “halfway through a fairly ambitious reset” as the Financial Services and Markets Bill moves through Parliament. Once passed, the bill will give the FCA new powers to regulate the cryptocurrency industry.
