U.K. Government Warns of Penalties for Unpaid Taxes From Crypto, NFT and Utility Token Holdings
In an effort to tighten its control over unpaid crypto taxes, the UK government is urging cryptocurrency users to voluntarily disclose their capital gains or income related to digital assets such as cryptocurrencies, non-fungible tokens (NFTs), and utility tokens.
In the guideline, crypto asset holders are being urged to carefully assess the extent of their unpaid crypto taxes. The number of years to disclose depends on the degree in which the individual has notified authorities or paid previous taxes.
Those who have taken “reasonable care” in managing tax affairs will need to pay taxes for 4 years, while those who “did not take care” have to pay what they owe for 6 years. Meanwhile, individuals that “deliberately misled HMRC” will have to pay taxes owed over a maximum of 20 years.
Those who have made a disclosure are granted a 30-day timeframe to pay all outstanding taxes on digital assets. Failure to meet this deadline could result in repercussions, including actions taken by the Treasury to recover unpaid amounts.
