UK Treasury Budget discusses separate reporting of crypto assets in tax documents – Taxes
UK taxpayers are required to separately identify cryptocurrency assets on their tax records for the 2024-25 tax year, according to the Treasury Department’s recently released Spring 2023 budget.
New anti-tax avoidance crimes planned by the UK government
Amid the chaos in the banking sector following the collapse of Silicon Valley Bank’s UK subsidiary, Treasury Secretary Jeremy Hunt presented the spring 2023 budget on Wednesday. Hunt, who was previously concerned with the bank’s collapse, told BBC reporters that the UK financial institution’s closure posed no immediate threat to the UK financial system. The budget, released by the Treasury, discusses the UK government’s decisions to “restore economic stability, support public services and lay the foundation for long-term growth”.
The budget also addresses taxes and spending, specifically addressing “fighting promoters of tax avoidance.” The UK government is planning to introduce new criminal offenses for tax evaders and will be consulting on this shortly. “The government will also consider accelerating the disqualification of directors of companies involved in the promotion of tax avoidance, including those who exercise control or influence over a company,” the Treasury Department budget said.
In addition, the Treasury Department document mentions the amendment to the UK self-assessment tax forms to include assets in cryptocurrency to consider. “The government is introducing changes to self-assessment tax return forms that require amounts related to cryptocurrency assets to be reported separately,” the Treasury Department statement explains. “The changes will be implemented on the tax forms for the tax year 2024-25.” In the UK, self-assessment tax returns are due on 31 January each year. UK taxpayers use the Government Gateway Service to file their tax papers and cryptocurrency assets must be listed separately under the new rule.
The UK Treasury Secretary and Treasury budget follows US President Joe Biden’s recently presented annual budget for 2024, which also includes proposed tax guidelines for cryptocurrency investors. Biden’s budget aims to eliminate the exchange-of-like provision, also known as Section 1031, from the Internal Revenue Code. The President’s administration believes that closing the so-called loophole will prevent the “ultra-rich” from taking advantage of the equality exchange scheme.
What do you think of the proposed changes to the tax policies of the UK and US governments in relation to cryptocurrency assets? Do share your thoughts in the comment section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, William Barton / Shutterstock.com
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Source: Crypto News Deutsch
