UK Crypto Users Face Penalties for Unpaid Taxes on Digital Assets

The UK government has issued guidance on how to voluntarily disclose unpaid capital gains or income taxes from crypto assets to avoid penalties. This includes exchange tokens such as Bitcoin, non-fungible tokens (NFTs), and utility tokens.

Those who have already made disclosures to the UK Treasury have 30 days from the disclosure date to make all necessary payments. Failure to meet the deadline will result in the Treasury taking steps to recover the money, and users may face penalties.

The UK government has been clarifying its stance on crypto tax, with the Treasury publishing a manual in 2021 to help UK crypto holders pay taxes. In March 2023, the country announced that people would have to declare their crypto separately in tax forms. It is important for crypto users to understand their tax obligations and make timely disclosures to avoid penalties and legal action.