According to the Exchequer’s recently published spring 2023 budget, UK taxpayers will need to report Crypto assets separately in their tax documents for 2024-25.
New Criminal Offenses Planned by U.K. Government to Combat Tax Avoidance
In the midst of the banking sector’s chaos Following the failure of Silicon Valley Bank’s subsidiary in the United Kingdom, finance minister Jeremy Hunt delivered the spring 2023 budget on Wednesday. Hunt, who was previously dealing with the bank’s failure, told BBC reporters that the bank’s closure posed no immediate threat to the British financial system.
The Treasury budget discusses the decisions made by the UK government to “restore economic stability, support public services, and lay the foundation for long-term growth.”
The budget also addresses tax and spending issues, specifically “tackling promoters of tax avoidance.” The United Kingdom government intends to introduce new criminal offenses for those who evade taxes and will hold a consultation on the matter soon. “The government will also consult on expediting the disqualification of directors of companies that promote tax avoidance, including those who exercise control or influence over them,” the Treasury budget states.
The Treasury’s document also mentions amending the United Kingdom’s self-assessment tax forms to account for cryptocurrency assets. “According to the Treasury notice, cryptocurrency assets will need to be identified separately on self-assessment tax return forms. Tax forms for the fiscal year 2024-25 will reflect the changes. In the United Kingdom, self-assessment tax returns are due on January 31. The Government Gateway Service is used by UK taxpayers to file their tax returns, and cryptocurrency assets must be listed separately under the new rule.
The UK finance minister’s and Treasury’s budget follows US President Joe Biden’s recently submitted annual budget for 2024, which includes proposed tax policies aimed at cryptocurrency investors. Biden’s budget proposes to repeal the Internal Revenue Code’s like-kind exchange provision, also known as Section 1031. The administration of President Donald Trump believes that closing the so-called loophole will prevent the “ultra-wealthy” from taking advantage of the like-kind exchange provision.