UK Treasury Budget Discusses Separate Reporting of Crypto Assets in Tax Documents – The spring 2023 budget was presented by finance minister Jeremy Hunt on Wednesday amidst the turmoil in the banking sector caused by the downfall of Silicon Valley Bank’s U.K. branch. Despite his previous involvement in managing the bank’s collapse, Hunt reassured BBC journalists that it did not pose an immediate threat to the stability of the British financial system.
The Treasury released the budget, which outlines the U.K. government’s efforts to “reestablish economic stability, provide assistance to public services, and establish a basis for sustainable growth.” The budget also discusses tax and spending and specifically addresses “tackling promoters of tax avoidance.” The U.K. government is planning to introduce new criminal offenses for those who evade taxes and will consult on the issue soon.
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“The government will also consult on expediting the disqualification of directors of companies involved in promoting tax avoidance, including those who exercise control or influence over a company,” according to the Treasury budget. Additionally, the Treasury’s document mentions amending the U.K.’s self-assessment tax forms to account for cryptocurrency assets.
“The government is introducing changes to the self-assessment tax return forms that require amounts related to cryptocurrency assets to be identified separately,” explains the Treasury notice. “The changes will be implemented on the tax forms for the 2024-25 tax year.”
The deadline for self-assessment tax returns in the U.K. is January 31st every year, and taxpayers in the country utilize the Government Gateway Service to submit their tax records. As per the new regulation, cryptocurrency assets need to be listed separately.
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The U.K. finance minister and Treasury’s budget release comes after the U.S. President Joe Biden’s submission of the annual budget for 2024, which includes proposed tax policies aimed at cryptocurrency investors. Biden’s budget seeks to remove the like-kind exchange provision, also referred to as Section 1031, from the Internal Revenue Code. The president’s administration believes that doing so will prevent the “ultra-wealthy” from taking advantage of the like-kind exchange provision.
