UK to Hit Crypto Users With Penalties for Unpaid Taxes

The Treasury encouraged users to voluntarily disclose unpaid income or capital gains tax from crypto, NFT and utility token holdings.

AccessTimeIconNov 29, 2023 at 10:46 a.m. UTC
Updated Mar 8, 2024 at 5:45 p.m. UTC

The U.K. government on Wednesday called on crypto users to voluntarily disclose any unpaid capital gains or income taxes to avoid penalties, and published guidance on how to pay them.

The tax disclosures should reflect capital gains or income from exchange tokens like bitcoin (BTC), non-fungible tokens (NFTs), and utility tokens.

Users who have already made crypto tax disclosures to the U.K. Treasury have 30 days from the disclosure date to make all necessary payments. If the deadline is not met, the Treasury will take steps to recover the money, and users may face penalties, the post said.

The aspiring crypto hub has been clarifying its stance on crypto tax. In 2021, the Treasury published a manual to help U.K. crypto holders pay taxes, and the country announced in March this year that people would have to declare their crypto separately in tax forms.

Edited by Sandali Handagama.


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.