NFTs seized in tax investigation

It’s old news that HMRC is showing increasing interest in the crypto arena, shattering the belief of some people that crypto and NFTs are not subject to taxation and are outside the interest of the taxman.

But in the latest news, HMRC have reportedly seized 3 NFTs as part of an investigation into a suspected attempt to defraud the treasury of £1.4m. The NFTs are valued at approximately £5000, although of course that’s subject to fluctuation.

The seizure of the NFTs “serves as a warning to anyone who thinks they can use crypto assets to hide money from HMRC” said the deputy director of economic crime at HMRC, Nick Sharp.

Crypto currencies and NFTs are not necessarily the hidden investments that people thought they would be, and the trail of funding could be considered more transparent than more traditional ways of holding and trading assets.

Even ‘accidental’ investors who never set out to defraud the taxman can inadvertently so do.

The moral of this story is to pay the taxes you should, and also to use an accountant who is experienced in the complex area of crypto tax to ensure that you don’t fall foul of the law. If you’re looking for a specialist crypto accountant, we have a great team at UHY Ross Brooke who can help you.
Get in touch before your crypto tax situation gets out of hand.