Do I need to declare my crypto in the UK?

Yes, in the UK, you are required to declare your cryptocurrency holdings and transactions for tax purposes. Here’s a detailed overview:

1. Taxation of Crypto in the UK:
   • HM Revenue & Customs (HMRC) treats cryptocurrencies like Bitcoin and other digital assets as property or assets, not currency.
   • You may be liable for Capital Gains Tax (CGT) on profits from selling or disposing of cryptocurrencies.
   • If you receive crypto as payment for services, it is considered income and taxed accordingly.
   • Mining profits are also treated as taxable income.
2. Declaration Requirements:
   • You must report any capital gains or income derived from cryptocurrencies in your Self Assessment tax return.
   • You are required to keep detailed records of:
     • Dates of transactions
     • Values at the time of transaction
     • Purpose of transactions
     • Costs of acquisition
   • If your total gains exceed the annual CGT allowance (£6,000 for the 2023/2024 tax year), you need to pay CGT on the gains.
3. Do You Need to Declare?
   • If you have bought and held crypto without selling or disposing, you generally do not need to declare it.
   • If you have sold, exchanged, or gained from crypto activities, you must declare these in your Self Assessment form.
4. Additional Considerations:
   • Cryptocurrency exchanges may send you a record of your transactions, which can help with reporting.
   • Failure to declare taxable crypto activities can lead to penalties or interest charges from HMRC.
5. Advice:
   • It’s advisable to consult with a tax professional who specializes in crypto to ensure compliance and accurate reporting.