When an investor realises the value of a cryptoasset for tax purposes and makes a profit over a certain amount (currently £12,300), they are obliged to pay CGT by the 31 January following the end of the relevant tax year, warned the Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT).

Gains made in 2021/22 need to be reported by 31 January 2023 with all necessary tax paid. Likewise, if a loss has been realised, this can only be offset against other gains from the same or future years if they are reported to HMRC.

Those who are trading in crypto assets, or receive them for services they carry out, will be subject to income tax on their profits.