Advertisement

HMRC set to tax Coinbase users who own more than £5000 in crypto

HMRC set to tax Coinbase users who own more than £5000 in crypto

Quick take

1 minute read

  • The Coinbase cryptocurrency platform is getting ready to send over details of some of its United Kingdom-based customers to the Tax Authority in the country. 
  • Users of the Coinbase exchange to own more than £5000 in cryptocurrency in the UK are going to have the details sent over to the HMRC.

The Coinbase cryptocurrency platform is getting ready to send over details of some of its United Kingdom-based customers to the Tax Authority in the country. Users of the Coinbase exchange to own more than £5000 in cryptocurrency in the UK are going to have the details sent over to the HMRC.

The interesting thing about this is that the HMRC in the UK required the exchange to avoid certain records of its United Kingdom-based customers between 2017 and 2019. Following discussions with the Tax Authority though, this notice was revised starting with users that met a specific requirement of its cryptocurrency earnings.

In an email to DeCrypt, the HMRC said the following:

"Based on further discussions with HMRC, a revised noticed was issued with reduced scope that now requires the disclosure of customers with a UK address who received more than £5,000 worth of crypto assets on the Coinbase platform during the course of the 2019/2020 tax year.”

Given that the HMRC sent numerous letters to several different crypto platforms in the UK requesting information on its residence last year, this doesn’t come as a big surprise.

It seems that the tax authority in the UK wants its fair share when it comes to taxing cryptocurrencies.

However, interestingly by negotiating with the tax authority, it looks like the platform has reduced the amount of information that will be sent to HMRC.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

Advertisement