HMRC focus on crypto currency transactions

In late 2021 HMRC started sending what it calls “nudge letters” designed to encourage holders of crypto assets to review their capital gains tax position. HMRC’s cryptoassets manual sets out HMRC’s guidance on the tax treatment of cryptoassets.

The letter invites taxpayers which HMRC has identified as holding crypto assets to consider if a disposal has been made in 2020/21 or earlier tax years. HMRC’s Wealthy Forum who are sending the letters have provided us with a copy of the relevant briefing which includes a copy of the letter.