HMRC sends nudge letters to crypto investors

News Team, 27/10/2021

HMRC has confirmed it will begin issuing “nudge” letters to cryptocurrency investors which are often a precursor to the launch of tax investigations.

The nudge letters will be used to encourage cryptocurrency investors to examine whether they have paid the correct amount of capital gains tax (CGT) and income tax on their crypto holdings.

HMRC can gain a full list of cryptocurrency holders by sending data requests to UK-based cryptocurrency exchanges and other financial institutions.

Graham Boar, a partner at accountancy firm UHY Hacker Young, said: “It is likely that HMRC believe large amounts of CGT and...

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