The United Kingdom is introducing a separate category in tax return forms, adding an area for taxpayers to report crypto assets as the United Kingdom continues to develop its cryptocurrency framework. This new category will appear on tax returns starting with the 2024-25 tax period.
The U.K. Treasury department recently published a report paper about the country’s national budget. This report announced the inclusion of the cryptocurrency self-assessment forms.
The cryptocurrency assets line is only visible in the table of expected expenses and revenues, appearing only for the years 2025-26. As such, British citizens would need to declare those assets in 2024-25, their previous tax year. The Treasury is not providing specific numbers for the revenue expected to come from this new tax category. However, the table shows the nominal figure of 10 million GBP.
The modifications were embraced by the Chartered Institute of Taxation, an organization that reviews tax policies. Gary Ashford, the institute’s deputy president, stated:
“Highlighting the need to declare crypto asset transactions in the tax return will help raise awareness of people’s obligations in this area.”
Ashford stressed the need to take additional steps to combat “widespread ignorance of tax payment and reporting requirements for crypto.” Ashford said that law-income crypto investors are those who lack sufficient knowledge of tax reporting.
The Financial Conduct Authority, which reported to the Treasury in March, said it is “midway through a quite ambitious reset” as the Financial Services and Markets Bill works its way through Parliament. The bill, once passed, would grant the FCA new regulatory command over the crypto market.