Starting from the tax year 2024-25, people in the UK who pay taxes will have to tell their tax authorities about any cryptocurrency assets they own when filling out their documents. This announcement was made by the government in its recent Spring 2023 budget.
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Jeremy Hunt, the Finance Minister of UK, announced the Spring 2023 budget recently. It was made after a big bank called Silicon Valley Bank went bankrupt and dissolved in the U.K. Jeremy said that the collapse didn’t create any more major financial troubles for people in Britain. The Treasury also released this budget with plans to get back economic stability and boost public services for everyone’s long-term benefit.
The government budget talks about taxes and how they are spent. They want to stop people from avoiding paying the right amount of tax. To do this, the government could make it a crime for anyone not paying the right amount of tax. They will also consider banning company bosses who use their companies to dodge paying tax.
The U.K. Treasury is making changes to the self-assessment tax forms so that anything related to cryptocurrency must be listed separately. This change will be effective in 2024-25 and all taxpayers in the U.K. need to use Government Gateway Service to file their tax records, which now includes separate detailing of crypto assets. Tax returns are due on Jan.31 each year.
The U.K. finance minister and the U.S. president, Joe Biden, both have similar plans for their tax policies that will affect cryptocurrency investors when it comes to money-related stuff. Biden wants to close a certain “loophole” called Section 1031 from the Internal Revenue Code so that very wealthy people can’t take advantage of it.
Do you have something to say about the governments of the U.K. and U.S. wanting to change taxation around cryptocurrencies? Leave your opinion in the comment box below!