A new consultation considers the way that the UK will implement the OECD Cryptoasset Reporting Framework and amendments to the Common Reporting Standard. It seeks views on the extensions to domestic reporting.
- The Organisation for Economic Co-operation and Development (OECD) has developed the Cryptoasset Reporting Framework (CARF), designed to ensure the collection and automatic exchange of information on transactions in relevant cryptoassets.
- Following public consultation at the OECD, the rules and commentary for the package have been agreed but the practical implementation is not prescribed in detail.
This consultation sets out the details of the rules and invites views on the UK’s proposed implementation. It also seeks views on the potential benefits and drawbacks of extending the CARF/CRS international standards to require UK reporting entities to include information on UK residents.
The consultation is aimed at businesses; legal, accountancy and tax advisory firms; representative bodies and trade associations; academic institutions and think tanks, and any concerned stakeholders with an interest in the implementation of the CARF or CRS. In particular, Cryptoasset Service Providers and financial institutions that might be within the scope of the rules.
This consultation is set out in four main sections:
- Cryptoasset Reporting Framework (CARF) – the government is consulting on the UK implementation of the OECD CARF and the government’s approach to its optional elements. The CARF provides a new framework for automatic exchange of tax-relevant information on transactions in cryptoassets.
- Common Reporting Standard (CRS) – the government is consulting on the UK implementation of the OECD amendments to the CRS, which update the rules to include new types of assets and improve its operation. It is also seeking views on two potential amendments to regulations.
- Seeking Views on Domestic Reporting – following on from the ‘The Tax Administration Framework review – information and data’ consultation, the government is seeking views on the potential benefits and drawbacks of extending the CARF/CRS international standards to require UK reporting entities to include information on UK residents.
- Summary of the consultation questions.
The consultation will run for 12 weeks from 6 March 2024 to 29 May 2024.
Useful guides on this topic
Cryptoassessets: Tax treatment: At a glance
FREEVIEW: How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits, taxable? Can you obtain tax relief if you make losses on Bitcoin?
Cryptoassets: How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits, taxable? Can you obtain tax relief if you make losses on Bitcoin? Gains on transactions in cryptoassets are potentially taxable in the same way as other investments.
External links
Consultation on the UK implementation of the OECD Cryptoasset Reporting Framework
