It feels as though most of us know somebody who knows of “this bloke” (and they do seem to be mostly young males) who has made a small fortune trading in Cryptocurency.

HMRC have sent a “nudge” letter reminding people they have identified as crypto owners that gains on crypto assets are subject to capital gains tax.

A copy of the letter is here.

HMRC have also repeated their view that such assets can be located where the owner is resident, so although they have not contacted non-UK domiciled people, they do regard gains on crypto as being subject to CGT in the hands of UK resident non-doms.

Of course this also means that losses on Crypto may be claimed for CGT purposes, so investors with other gains may at least get a measure of tax relief.

There is also an HMRC manual on cryptoassets, and as they edge into the mainstream the tax man is eager to ensure they get their cut.