UK HMRC Issues 65,000 Crypto Tax Warning Letters
Crypto firms in the UK are under increased scrutiny from HM Revenue & Customs (HMRC) due to unpaid gains. There has been a significant rise in warning letters issued to these firms.
Key Points
- HMRC sent 65,000 warning letters to crypto investors and organizations in the 2024–25 tax year, marking a 140% increase from the previous year's 27,700 letters.
- Over the past four years, more than 100,000 letters have been sent, indicating a growing number of tax defaulters.
- The letters serve as prompts for investors to correct their tax filings voluntarily; failure to comply leads to formal investigations.
- The rise in crypto adoption, with an estimated 7 million UK adults holding crypto, necessitates heightened tax compliance efforts.
- In contrast, Ohio is considering a bill to exempt cryptocurrency transactions from state taxes to promote digital asset adoption.
- The proposed bill in Ohio classifies Bitcoin, Ethereum, and stablecoins as "digital assets," advocating for similar tax treatment as fiat currencies.