Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the amount of capital gains tax (a) collected and (b) that remains outstanding owed from taxpayers under (i) Bitcoin trading and (ii) other financial activity in decentralised finance in each tax year between 2013 and 2020.

Capital Gains Tax (CGT) is due on gains from cryptoassets held as investments which are taxed in line with CGT tax rates and exemptions rules as for other assets. The Self-Assessment form does not currently separate capital gains made on cryptoassets from other assets. As a result, a reliable estimate for Capital Gains Tax due from cryptoassets would only be available at a disproportionate cost.

Decentralised Finance (also known as DeFi) is a comparatively recent innovation with notable uptake during mid-2020. Amounts arising from decentralised finance are, generally, liable to either Income Tax or Capital Gains Tax. However, as with cryptoassets, the Self-Assessment form does not separate capital gains and/or income arising from decentralised finance. As a result, a reliable estimate of Capital Gains Tax or Income Tax collected from decentralised finance would only be available at a disproportionate cost.