HMRC to Send Cryptoasset Nudge Letters

HMRC have confirmed that they will issue "nudge letters" to taxpayers who own (or have previously owned) cryptoassets.

The nudge letters will ask taxpayers to consider whether they have paid the correct amount of income tax and capital gains tax on cryptoasset transactions.

Recent FCA research suggested that around 2.3 million UK adults own cryptoassets so there is potentially a large number of people who could be affected.

In most cases cryptoassets are held as an investment and subject to capital gains tax, but they can sometimes be subject to income tax.

For more information on the potential tax consequences please see our recent blog on the Tax Treatment of Cryptoassets

What should I do if I receive a nudge letter from HMRC?

The first thing to remember is don’t panic! The letter doesn't mean that tax is necessarily payable, but it is a reminder to check that things are in order - and if they aren't then steps can be taken to correct matters.