Government-commissioned research has found that more than half of cryptoasset investors are unaware of the tax liabilities associated with the digital currencies.
The survey, published in July, shows that 42% of crypto owners knew they might be liable to pay tax when using cryptocurrency to buy goods or services. Of that number, 45% thought capital gains tax (CGT) might be liable, and 40% said VAT.
Only 34% of owners said they understood CGT well, but 37% knew little or nothing about CGT, and 22% knew nothing about it.
HMRC has published guidance on cryptocurrency taxation, but only 28% of those surveyed had seen the guidance. Most of those respondents said it was clear and helped them understand the tax liabilities for crypto.
Only 16% of those asked had sought tax advice about their cryptoassets, but 53% of owners had contacted HMRC at least once in the last year but not necessarily for advice on cryptocurrency tax.
There was a split among investors when dealing with HMRC; 50% dealt with it independently, while the other 50% had a paid agent, family member, or friend get in touch with HMRC.
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