---
title: "HMRC’s crackdown on cryptocurrencies"
url: https://taxdisputes.co.uk/2019/08/bitcoin-ethereum-taxation-advice-solicitors-london/
date: 2019-08-14
modified: 2026-06-02
author: "Annabel Clarke"
description: "Bitcoin Investors are likely to receive tax bills regarding their holdings as HMRC begin to write to some of the largest cryptocurrency websites. How has HMRC cracked down? HMRC have..."
categories:
  - "HMRC"
  - "HMRC Campaigns"
  - "HMRC Penalty"
  - "Report on HMRC"
  - "Tax avoidance"
  - "Tax Evasion"
tags:
  - "bitcoin"
  - "HMRC"
  - "HMRC Policy"
  - "HMRC Tax Assessment"
  - "HMRC Tax Disputes"
  - "Resolving HMRC Tax Disputes"
  - "Tax"
  - "tax liability"
  - "tax planning"
  - "Tax Rebate"
  - "Unpaid Tax"
word_count: 342
---

# HMRC’s crackdown on cryptocurrencies

[Bitcoin](https://bitcoin.org/en/) Investors are likely to receive tax bills regarding their holdings as [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) begin to write to some of the largest cryptocurrency websites.

![lexlaw tax disputes solicitor london hmrc dispute financial litigation solicitors barristers lawyer middle temple](https://taxdisputes.co.uk/wp-content/uploads/2019/08/HMRC-Bitcoin-2.jpg)

## How has HMRC cracked down?

[HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) have [reportedly](https://www.telegraph.co.uk/investing/news/bitcoin-investors-face-tax-crackdown-hmrc-writes-major-brokers/) written to websites such as Coinbase and [Etoro](https://www.etoro.com/) to pursue information on customers who may owe [Capital Gains Tax (CGT)](https://www.gov.uk/capital-gains-tax). [CGT](https://www.gov.uk/capital-gains-tax) should be due, by law, on the profit made from the [bitcoins](https://bitcoin.org/en/).

Due to the anonymous nature of the [bitcoins](http://bitcoin.org/en), it has been harder for [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) to track the tax liabilities of the [bitcoin](https://bitcoin.org/en/) holdings. The UK managing director of [Etoro](https://www.etoro.com/), Iqbal Gandham, stated that the request from [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) for information was “no surprise” with Brazil and America also taking steps to tax [bitcoin](https://bitcoin.org/en/) equities.

## What is Capital Gains Tax?

When selling (or ‘disposing’) an asset [Capital Gains Tax](https://www.gov.uk/capital-gains-tax) is the tax that is applied to the profit made from the sale. The gain that has been made it taxed but not the total sum of the money you receive from the sale.   

‘Disposing’ of the asset includes: selling it, gifting it, swapping it for something else, or receiving compensation for it, i.e. an insurance payout if lost or destroyed.

## Do I need to pay tax on my cryptocurrency?

Yes, however, there could be limitations to this.

It is likely [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) will now discover [bitcoin](https://bitcoin.org/en/) holdings as they begin to contact the biggest cryptocurrency exchange websites.

Guidance regarding taxation of cryptocurrency was updated this year stating that gains from 2018-19 should be recorded and taxes should be paid by January. It was also stated that losses should be declared also as they can be offset against capital gains.  

## I've received an assessment from HMRC

Our [expert tax solicitors and barristers](https://taxdisputes.co.uk/expert-advice/) can assist you in submitting an appeal to HMRC or the Tribunal and entering into negotiations with HMRC by providing [comprehensive legal advice](https://bankruptcypetitionandannulmentlaw.co.uk/) and robust responses to the investigators. Our [tailored team ](https://bankruptcypetitionandannulmentlaw.co.uk/expert-legal-advice/)which also comprises of specialist forensic accountants can calculate what you owe and make representations on your behalf to HMRC.

#### Call us on 02071830529 or complete our online contact form.