HMRC sends 'nudge letters' to crypto investors

HMRC has 'sent nudge' letters to crypto investors who it suspects have failed to pay the correct tax on their gains, according to the Chartered Institute of Taxation (CIOT). 

Many crypto investors are unaware of their tax obligations due to uncertainty over tax rules and limited understanding of the nature of crypto assets. 

A chargeable disposal occurs when an individual: 

• Sells crypto assets for fiat currency. 

• Exchanges one crypto asset for another. 

• Uses crypto assets to buy goods or services. 

• Gives away crypto assets to someone other than spouse or civil partner (in this instance, the individual is deemed to receive the value of the asset even if they do not actually receive anything).