Recent HMRC research highlights a lack of understanding from crypto asset investors in relation to tax rules.
Most individuals involves in crypto assets aim to see an investment return, however new research from HMRC suggests the majority of individuals were unaware of how Capital Gains Tax (CGT) rules operated in relation to crypto assets. The research concluded 34% stated they had a good understanding of how the CGT rules worked but 37% knew little or nothing and 22% were not familiar with CGT at all.
HMRC will be concerned with these findings as we see significant increases in the number of individuals investing into crypto assets. Furthermore, the research has found 76% of crypto owners are under the age of 45 and could result in many young people’s first real interactions with HMRC being an investigation into their affairs for unpaid tax in the future.
HMRC will inevitably be seeking to improve their guidance and simplify the tax rules in a space that has exploded in interest in recent times, but will need to do so promptly to avoid a wave of crypto investors getting into financial trouble in years to come.
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