UK Tax Authority Launches Voluntary Disclosure Mechanism for Crypto Asset Income

According to Foresight News, the UK's tax authority, HM Revenue and Customs (HMRC), has launched a voluntary disclosure mechanism to encourage the public to report their untaxed income from crypto assets, including exchange tokens, NFTs, and utility tokens. The Financial Times reported that this initiative aims to help individuals and businesses comply with their tax obligations related to cryptocurrency transactions. The voluntary disclosure mechanism allows taxpayers to report their previously undeclared crypto asset income and settle any outstanding tax liabilities. This initiative is part of HMRC's broader efforts to tackle tax evasion and ensure that all taxpayers are paying their fair share. By encouraging voluntary disclosure, the tax authority hopes to increase compliance and reduce the need for costly and time-consuming investigations.