HMRC Issue One To Many Letters Prompting Inheritance Tax (IHT) Compliance

Cryptoassets must be reported as property for IHT purposes and HMRC has begun issuing One to Many (OTM) letters to agents who have submitted Inheritance Tax (IHT) returns, reminding them of the obligation to include cryptoassets. Here we cover HMRC's position on cryptoassets and the practical issues for agents and personal representatives, penalties and compliance and what to do if cryptoassets have not been reported to HMRC.

Cryptoassets and IHT: HMRC's Position

Cryptoassets are a rapidly developing area and they may not always be at the forefront of agents' or taxpayers' minds when considering tax compliance. HMRC hopes the OTM letter will help mitigate against the compliance risks of agents failing to account for IHT through incorrect or non-filing.