How are Cryptocurrencies taxed in the UK? Bitcoin Taxes
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- Опубліковано 3 жов 2024
- With the recent resurgence of the popular crypto currency Bitcoin, there is a growing army of you wanting to get into investing in crypto assets. Understanding crypto taxes are crucial if you don't want to end up with a tax exposure from HMRC. And UK tax laws is essential if you want to maximise your chances of success when dealing with this popular digital asset.
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⏱️ Time Stamps:
0:48 - What is a crypto-asset according to UK tax laws?
2:25 - How are crypto currencies taxed for individuals in the UK?
5:55 - How are crypto currencies taxed for non-UK individuals?
7:20 - Record keeping and reporting
There are three different types of crypto asset, these are: Exchange Tokens, Utility Tokens and finally, Security Tokens. In this video we are focusing on exchange tokens. This is the most popular form of crypto currency and the category which the popular cryptocurrency Bitcoin belongs to.
If you are a UK tax resident and you make a gain from a crypto-asset then you will be subject to Capital Gains Tax. In rare occasions you could be charged income tax, namely if your business was trading cryptocurrencies. If you are a non-UK resident then you will generally not be subject to UK taxes, CGT and Income Tax included.
What's particularly important to note about cryptocurrencies is that HMRC are adopting to tax the individual instead of the asset due to its non-tangible status. This means that it does not matter where you hold your crypto-wallet. You cannot simply hold your crypto-wallet in a tax haven country to avoid paying UK tax. If you, the individual, are a UK tax resident then you will be liable for all associated taxes. This goes the other way too; if you are a non-UK resident then you can still hold your crypto-wallet in the UK and not be liable for CGT and other associated taxes.
It is your responsibility to keep detailed records of your transactions and other information that we have covered in this video. Since gains and losses will have to be declared on your self assessment tax return you must keep this information on file for a minimum of 5 years after the 31st January deadline pertaining to that tax year. Although many trading sites and companies do keep records of transactions, ultimately the responsibility lies with you and it is in your best interest to keep as detailed accounts as possible.
We hope this video has given you a better understanding of how the taxes work for crypto-currencies and taken you one step closer to knowing your numbers. Please make sure you like and subscribe as this really helps us to create more free content for you. Finally, let us know what you think in the comments sections, are you considering investing in Bitcoin or a similar cryptocurrency?
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#cryptotax #cryptotaxes #bitcointax
Cryptoassets (also known as cryptocurrencies) are relatively new and the tax treatment on them whether you are an investor or trader can be confusing.
Time Stamps:
0:48 - What is a crypto-asset according to UK tax laws?
2:25 - How are crypto currencies taxed for individuals in the UK?
5:55 - How are crypto currencies taxed for non-UK individuals?
7:20 - Record keeping and reporting
Thank you for your video. If I buy one crypto now worth £1k and hold it for the next 5 years, do I have to immediately fill in the self assessment form? and keep submitting a form every year? I am not certain if I should fill in self assessment as soon as I make my first purchase of a coin or do I only report it when I sell it for more than £12300 which is above the tax allowance? thank you.
THE CRYPTO AND FOREST TRADE CURRENCY MARKET HAS BEEN GOOD NEWS LATELY, MANY PEOPLE IN IT ARE SEEKING A GREAT RETURN INVESTING TO SECURE MORE PROFIT AND ENSURE SUCCESS
You are right sir
Most time having knowledge or insight about a particular activity can as well be a pleasing exercise.I can boldly say that forex and crypto trading is one of the profitable money exchange services that elevates investors and their financial status
Most people remain poor only because friends and relatives discouraged and advised them against investing and trading forex while the wise ones kept investing and going higher financially.
As a forex trader it's almost inevitable that you're going to experience some ups and down along the way, alertness and decisiveness are both fundamental ingredients in the recipe for a successful fo rex trader.
I wish I got in on digital currencies earlier, I should have made millions by now. I just began investing now that the digital currency market is booming.
I can unequivocally say that trading is one of the most profitable and lucrative business for every investors with the right expert
Trading is very profitable with the help of a seasoned expert trader or broker managing your trading account
Yeah bitcoin trading requires expertise and experience broker to be able to make it big
To avoid making losses while trading, you need to get full understanding and knowledge of trading and holding
i neeed heIp
Trade with an expert else you will lose all your capital and you will drop off the market
Hello Mrs Sonia the bitcoin trader is legit and her method works like magic I keep on earning every single week with her new strategy
Those scammers they promise to make up to $50,000 profit within the space of 7 days with just $500 to invest and end up not even refunding your capital but she's a woman of integrity, with $500 he will tell you she can only make profit within the range of $4000 to $8,900 and she actually delivers.... she's great
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I have been watching some videos and I was thinking about investing, but still don't know where to start from, any recommendation?
Through the decade cryptos has proven to be globally to numerous Individuals but personally you'll never understand who profitable crypto is until start investing in the market.
Mr Greg Robinson is legit and his method works like magic I keep on earning every single week with him new strategy now
I have seen quite a lot of UA-cam videos concerning making profits in the Forex market, and I've seen them all and yet I still can't be able to
make profits in the Forex market on my own, can
anyone give any advise to a struggling trader over here?
I have been watching some videos and I was thinking about investing, but still don't know where to start from.
Mr Greg Robinson and his method works like magic I keep earning every single week with his new strategy
All I am hearing is that HMRC haven't got a clue if you make money or not! The fact that you have to tell them or even produce your wallet tells me that if you are not flash, deposit the money in small amounts, then nobody will notice and you can carry on as normal. Not one decentralised wallet will talk to HRMC or the FCA. NOT ONE! so filter the money into different bank accounts in small amounts and nobody will know! Better still, if you are going to buy something flash? Make sure the other person has a wallet too and pay them direct that way. Fuck HMRC!
Yes I agree , large withdrawals will be a red flag . Small living cost withdrawals to a few different bank accounts is a safer option . If big purchases are required then look to borrow against the crypto
So if I have less than £12, 300, I don't have to inform hrmc
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
What is the best strategy to enter crypto trading now for someone with more or less than $1000 to invest?
you need a pro or very goodTrader. Someone like Stephany Reuben
Having an investment advisor is the best approach to the stock market right now. I was going solo without much success until my wife introduced me to Steph . I've achieved over 80% capital growth this year, excluding dividends
Almost gave up due to constant losses, but Steph turned my luck around
steadily getting up to 15k weekly now
where can i find her?
Great content
Do I have to pay tax if I sell crypto to FIAT currency but not withdraw that money to my bank although I will reinvest that money into another crypto again shall I make any claims to HMRC or I can just do this until I pull out and claim the money into my bank account?
Am I obliged to report every transactions yearly even if the money has not been withdrawn to my bank account?
As soon as you sell or even swap crypto it is liable for tax. I made this mistake buy doing a huge amount of swaps before I realised I was meant to keep track of everything. Unless your profit is more than £12300 you don’t need to report it.
@@M0ike I see thank you very much for the answer, and do you know how much is the tax in the UK? Is it 20% or more?
@@zoltansballroomandlatin Depends what income tax bracket you’re in, if it’s lower then it will be 10%, if higher then it’s 20%.
I will forever be indebted to you Mrs Victoria and this channel you’ve changed my whole life I’ll continue to preach about your name for the world to hear you’ve saved me from a huge financial debt with just little investment thanks so much Mrs Victoria Olga
its wrong to tax crypto, you risk your money for hope to have something and boom pay a tax, but if you loose your invested money!? whey cant help you! its like lottery and gambling at the moment.
Mrs Esther is legit and her method works like magic I keep on earning every single week with her new strategy,.......
Wow I' m just shock someone mentioned expert Mrs Esther I thought I' m the only one trading with her She helped me recover what I lost trying to trade my self
I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Esther I think she is the best broker I ever seen
My first investment with Mrs Esther gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known Thanks for introducing me to Mrs Esther
Mrs Esther is obviously the best, I invested $3,000 and she made profit of $28,000 for me just in 15 days Her success story is everywhere
Who's this professional everyone is talking about I always see her post on top comment on every UA-cam video I watched I think I'm interested how can I get in touch with Mrs Esther
it seems counter intuitive for them to say its a high risk asset yet they tax u if u gain on it
What if a UK resident purchase coins and transfer it to a third party, WITHOUT any gains? How will this work? Does a Binance report all transactions to tax Dept?
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
Such a headache. Need an accountant lol
You're quite right EternalSoldier87, it's quite fiddly!
What if your wallets was compromised and transactions happend that you didn't make
You always drop the right videos.
Thank you Harrison.
Hi, Please can you do a video on how tax works / is calculated if I use an automated trading bot to trade (and hopefully, accumulate) crypto assets?
For example, If I convert GBP to USDT in Binance, use Binance API for an automated bot that automatically makes trades from USDT to e.g. BTC / LINK / ADA etc., Holds, waits for price to go up, sells back to USDT. Then eventually I will convert USDT back to GBP in Binance, and then withdraw from binance in GBP. - How on earth is that taxed? I've watched so many videos and I'm still clueless!
Have you found an answer to your question? I was wondering the same thing
I do believe your gain/loss will be when you eventually I will convert USDT back to GBP in Binance. You have to declare that exchange and maybe pay taxes on it.
Taxing is illogical and makes no sense. They dont even see crypto as currency....
And this non curency fluctuates so much....
Its bit like say saying i have 2 clouds above me and few moments lates one cloud breaks into 3 clouds and thats capital gains and must be taxed. It makes no sense..
It should only be taxed when you covert into uk pounds....anything else is ridiculus..
They should write to everyone in the country and tell then about non money curency tax....good grief
And we can pay them in crypto...not UK pounds.....good greif
I can't find an accountat to do my reports, NO ONE is dealing with cryptocurrency. Who do you all use in the UK ??
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
Great Video, thank you Tony!
Hi Sean, you are very welcome indeed.
cheers
You're welcome Daz Pan
Mrs Jane is legit and her method works like magic I keep on earning every single week with her new strategy
Wow I' m just shock someone mentioned expert Mrs Jane I thought I' m the only one trading with her
She helped me recover what I lost trying to trade my self
I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Jane
I think she is the best broker I ever seen
Thanks for introducing me to Mrs Jane
My first investment with Mrs Jane gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known
Yes I' m also a living testimony of expert Mrs Jane
Mrs Jane is obviously the best, I invested $3,000 and she made profit of $28,000 for me just in 15 days
Her success story is everywhere
Who's this professional everyone is talking about I always see her post on top comment on every UA-cam video I watched
Thank you for the video my friend
I am a little confused
If I were to buy cryptocurrency around 30 buys and sell within a few days on average but my profits for the year was over £1 million would I pay income tax or capital gains tax
Different accountants seem to have different opinions on this and even hmrc say it's very rare it would be taxed as income tax
Could you shed any light on this please
Hey Damien. If my profit is smaller than 1000£ do i need to complete self assassment? I never been registered for SA yet. Is Tax year for CGT counts from 1 January until 31 December?
The UK tax year runs from 6 April of one year to 5 April of the following year. The self-assessment form for Capital Gains (SA108, link below) states:
"Fill in the ‘Capital Gains Tax summary’ pages if:
• you sold or disposed of chargeable assets which were worth more than £49,200
• your chargeable gains before taking off any losses were more than £12,300 (‘annual exempt amount’)"
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974133/SA108_English_Notes_2021.pdf
@@JivanPal so simple answer will be.. No. Thanks
Very precisely said. Most useful content. Thank you soo much for the video. Just subscribed..
Thanks for the subscription Kalyani, and we're delighted our videos are useful to you.
What if I’m mining A coin paid in Bitcoin then transferred my reward payments into other crypto coins assets how would I be taxed if I’m mining then Buying others from it
How are taxes when im providing liquidity pool tokens ? Is that classed as INCOME rather than CGT ?
If you have pre-settle status but your a EU citizen from another country (say if I want to withdraw my gains in my country )
Anybody know of a calculator of profit / loss when you exchange one crypto for another ?
Hi there,
I have a question specifically regarding Copy Trading on stocks are shares (such as on eToro), as I’m unsure at which point tax is payable. Consider the following scenario:
- You initially invested £100k with a single copy trader (who for arguments sake trades stocks and holds them for 6 months on average)
- Fortunately you make £50k profit in a year, of which £25k is realised profit and £25k is still in unclosed trades
- All £150k is still invested with the copy trader and you have not withdrawn any funds or closed the copy
Please could anyone confirm which of the following is correct in this scenario?
1. Capital gains tax is owed on the £25k in realised profit (minus annual CGT allowance), despite the fact it is still invested with the copy trader.
2. CGT is only due on the total profit once the copy has been closed and funds returned to you, so all funds may be left invested with them long-term before tax is due.
3. Both wrong/another option?!
Any ideas?
Thanks
Hello
When does or did the crypto capital gains start? Is it from April 2021- April 2022?
Hi Nabeel, in the UK, all taxes based on individuals are assessed from the 6th Apr to the 5th Apr, this is the UK tax year. You can go watch an in depth course we have done on crypto taxes in the UK >>> accountingtaxacademy.com/courses/
@@tonydCFO hello
Thanks for the reply. The tax month you have mentioned. It is for 2021 - 2022 right?
Could you help give advice on if I had £1,000 worth of a certain coin and I transfer it multiple times for different coins, but never profited or lost, am I subjected to capital gains tax? I might start filling in a digital ledger from the first of April of all my trades from that day. It’s hard to keep a record when day trading.
I would advise that you take advantage of accounting software such as GnuCash (free double-entry accounting program), QuickBooks (popular online accounting platform), or Coinpanda (cryptocurrency-specific online accounting platform) to record your trades. You can then easily pass the information over to an accountant, who can work out your chargeable gains for you.
If you don't feel the need to look at figures from trades for your own benefit, and only for the sake of recording them for tax purposes, then I would suggest you rely on your trading platform's "export ledger/transactions" functionality. Every month or every few weeks, export your transaction history from the platform. You can then use this to do your accounting without having to first manually record the details of every trade as and when it happens.
How about a video on TAKING A LOAN AGAINST CRYPTO ASSETS in the UK? Celsius Network does this, but I am not sure if it is a tax event or not?
See the following guidance on capital gains treatment of foreign currency loans, which also applies to loans denominated in cryptoassets: www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg78335
Would really like info on where to find instructions on how to use spouse’s CGT allowance to complete my self assessment.
how fast do we have to show the profits to the HMRC after cashing out? Is there a time limit, like if i cash out big amount, will the hmrc be thesecond day at my door or how does it work? thanks
Hi Ahmed, thank you for your question. You can go along to our Q&A section where you can post your question and get a response from a qualified accountant or chartered tax advisor >>> accountingtaxacademy.com/qa-section/
Can you make a video on how to be most tax efficient when cashing out of crypto? I think you may have a lot of business come the end of this year !
But is there any way for investors to navigate around without suffering tax
Borrow against the asset, there is no tax on loans
@@petetongue6561 I recently came across an interesting way to take cash from your Crypto with no tax liability
@@veronicab4706 care to share:)
thank you for the help u save me
HI Rick tom, you're welcome and thank you for your support 👍
What happens if I do not say nothing to the taxman. I have already payed the tax on my earnings.
If you are bad at tax evasion (which the vast majority of people are), then the taxman will realise that something is amiss, and penalise/prosecute you accordingly.
what if I’m transferring an alt coin in to ethereum then in to fiat. I can’t transfer my alt coin into fiat directly. Will I get double taxed? Thanks in advance
These are two chargeable events, and both need to be reported per their Sterling value. The no-arbitrage principle implies that the net result will be the same as a direct trade if the second exchange happens immediately after the first.
*Example:*
(1) Alice has 10 XMR which she bought sometime in the past for 500 GBP, and the current exchange rate is 1 XMR = 200 GBP. She wants to sell the 10 XMR, thus expecting to get 2,000 GBP for it, and thus making a gain of 1,500 GBP. However, her exchange doesn't have an XMR/GBP pair, but it does have an XMR/BTC pair and a BTC/GBP pair, so she decides to go that route.
(2) Suppose that, at that time, 1 BTC = 50,000 GBP. Thus, by the no-arbitrage principle, it must be that 1 BTC = 250 XMR; or equivalently, 1 XMR = 0.004 BTC.
(3) Alice sells her 10 XMR for BTC at that rate, thus acquiring 0.04 BTC. The nominal value of the transaction is 2,000 GBP, and the cost basis of the XMR sold is 500 GBP (the amount Alice paid to acquire the XMR in the first place). Thus, the gain is 1,500 GBP.
(4) Alice then immediately sells her 0.04 BTC for 2,000 GBP. However, the cost basis of the 0.04 BTC is also 2,000 GBP - that's what Alice effectively paid to acquire the BTC in the first place - so the gain from this transaction is zero.
(5) Overall, Alice has made a gain of 1,500 GBP.
*Example:*
Suppose the situation is the same as before, but instead of step (4) happening immediately after step (3), Alice instead waits 5 minutes. In that time, the BTC/GBP exchange rate has changed to 1 BTC = 51,000 GBP. Now, when Alice sells her 0.04 BTC, she receives 2,040 GBP. The cost basis is still 2,000 GBP, so this transaction has resulted in a gain of 40 GBP instead of a gain of zero. In this case, the gains are 1,500 GBP from the XMR/BTC transaction, and 40 GBP from the BTC/GBP transaction; a total of 1,540 GBP.
@@JivanPal that’s great! Thanks for the response!
If send my bitcoin to another exchange, would it count as a sale, and would I need to then pay capital gains on it?
Yes Crypto to Crypto triggers taxable event
@@mattwallerstein5345 even if I transfer my bitcoin to another platform without changing currency ?
@@1KMegykicsitmindenhol it might trigger a taxable event if you transfer to another platform, But transferring crypto between your own exchanges or wallets Is not a taxable event
@The Travelog - no. A taxable event only occurs when assets are traded for other assets; _not_ when assets simply change hands but are still held in your name (e.g if BTC from Exchange A is directly sent to Exchange B, and is still held in Exchange B as BTC).
what if i HODL my crypto, do i still pay tax as i have not sold anything yet?
Nope...
Hi there's been a recent update on crypto. Is CEFi and defi viewed differently eg on Cefi you can earn interest on crypto but on defi you stake go get rewards
Under UK law, all such profits, whether they are nominally "interest from loan" or "profits from stake", etc., are treated for tax purposes as if they are interest. Examples of existing application of this law include so called Sharia-compatible savings accounts, which deal in "expected profit rates" rather than "interest". See Finance Act 2005, §51(1) (link below):
"Alternative finance return or profit share return is to be treated for the purposes of ITTOIA 2005 [Income Tax (Trading and Other Income) Act 2005] as if it were interest."
www.legislation.gov.uk/ukpga/2005/7/part/2/chapter/5/crossheading/treatment-of-alternative-finance-arrangements/enacted
@@JivanPal I'm not sure Sharia product are comparators
So I could pull out 12300 every year tax free?
*Thanks for your comments*
*For more gaining ideas*
*For good investement in crypto*. .@.Wha^^s@pp!! 👇
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
What if I don't pay
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
Hi what how is trading crypto on high yield platforms treated with regards to income tax , capital gains tax and derivatives? If i get scammed there is no recourse for me BUT is this the same tha i dont owe anybody if i WIN as is for The National Lettroy prises? I am asking this to understand where most of us stand with regard to the FCA ban on crypto from january 20121.
Getting scammed is not the same as making a loss simply because the price of an asset didn't change in your favour. If you're scammed, you have recourse in the form of reporting fraud to the police (though in the context of crypto, it is unlikely that you will find the fraudsters or receive compensation). If you make losses from trading, you can carry these forward to offset any future gains from trading.
The FCA has only banned derivatives and "easy to access" options, futures, and leveraged trading, so that retail investors have to jump through hoops in order to access such trading abilities. Do you have any specific questions/concerns about the ban or how it affects you?
Excellent presentation. I heard rules around CGT and crypto are changing .. would appreciate your insight.
Hi Sonia, thank you. The guidance around crypto CGT and tax in general is constantly evolving. With the advent of DEFI and NFT's it's getting more complex.
If you sell crypto for a profit but keep the GBP gain on the exchange and dont withdraw it into your bank account. Do you still have to report the gain via SA and pay CGT?
?????????????
Yes. Even exchanging one crypto asset for another is a disposal event and therefor liable to CGT on any profits gained. You do not have to convert to fiat for it to be a taxable event.
@@mrnoisy4883 i appreciate the clarification. Thank you!
If i have settlements status, do i pay CGT?
The world is changing! I'm glad to be part of that, the crypto has made so many millionaires already. It is the evolution of money, Thanks for making this informative video I just subbed 👍
Cool, sounds like you've got so much money from crypto, I'm new around here
@@johnmark2935 Yeah, I've made a lot! Investing, holding and trading crypto has been my best decision ever
Crypto is the way to go 🚀
@@robertdenison6178 that really sounds good, how do you go about taxes?
@@johnmark2935 First I thought of moving out of the US that can't be feasible atm but I've made my gains with the help of a financial consultant and its been easy peasy making money on my investment. I've built a good retirement portfolio and passive income.
Do you have to show your crypto assets in your self-assessment if it falls below the £12,300 allowance?
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
Do you take clients on who stay up in scotland as im going to buy a few mining machines in november
Hi Alan, yes we do. If you want to have an initial 20 min chat, please feel free to book a discovery call >>> aidhanfinancial.com/book-a-discovery-call
Sounds like an absolute bull ache.
Hello brother am not in UK am in italy right now i want to withdraw on ADAMANT FX they toll me to pay the taxe because UK ask for taxe in other for me to withdraw my Bitcoin
Can you include exchange fees (i.e usually coin market for example would charge 0.1% to buy a coin and also to sell, can these amounts be used to reduce the overall profit?)
Hi Heisenberg, generally yes you can add exchange fees to the base cost, thus reducing your potential taxable profit(s).
@@tonydCFO Hi thanks for responding. One more question, are the rules different if you buy and sell within say a week. (i.e I buy a coin on the 1st Feb and then sell on the 5th Feb, then buy again on the 6th and sell on 8th etc) or is it treated the same in terms of profit for each transaction regardless of how often transactions are occurring?
I trade bitcoin and I failed to keep my trading record and the bitcoin exchanger website I used to trade is closed no papers to show what will I do to declare my taxe?
If your gains do not exceed £12,300 or you never made a trade valued at £49,200 or more, then there is no need to report capital gains.
@@JivanPal ok thanks you so much
missing info on how to calculate bed and breakfast
Great video and very informative! I'm still a little bit unclear as to where i would stand when cashing out my crypto. Im a british citizen but have been living overseas in Australia for the past couple years (At this point not an Australian resident other than for tax purposes). If i was to cash some crypto out into my UK account would i still be eligible for the annual tax allowance? Would i also be subject to UK tax if i was to cash out more than the annual allowance? I haven't earned any taxable income in the UK for the past 2 years. Any information would be a great help
He does mention at 6:50 that UK tax residents cannot shield their cryptocurrency ss from UK tax by holding in a different country. Which IMO is extortion lol
"Tax is triggered when you exchange crypto with another crypto asset type" So this means, if I swap bitcoins with ethereums, this won't trigger a tax because they both are the tokens of the same crypto-asset type.(Exchange tokens). But if I exchange bitcoins with say, Tether, this will trigger tax because tether is a security-type token. Did I understand correctly?
I suspect the same but it appears no one is looking at the questions
Not correct. Ever bit of swap or trade is taxable, so for ex if you have 100 USD worth of ETH and swap it for BTC and the value is now 500 USD worth of BTC then you have to pay tax on the 400USD Profit you made.
Info-+1
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Thanks for the video, very informative, though I'm still unsure about one thing. If I was trading crypto to crypto, but haven't exchange to a fiat during that year, do I still have to report it if I keep holding it?
I have the same doubt
No only when u sell it
You dispose of one coin for another so yes you will have to tax capital gains if all your trades exceeds 12.300 pounds that year.
@@Challee90 a bit difficult to calculate those exchangues when the value of the coins are changuing constantly
@@jesustrejo1110 there are more than 8,000 cryptocurrencies and some of them values are too tiny.
I myself have invested in approximately 100 different tiny cryptocurrencies. It's extremely mind boggling task for me to calculate each transactions/trades for tax purposes coz I may have done more than 10,000 trades so far including moves from one exchange to another exchanges etc. It's too confusing task especially when you trade coins with ETH, BTC, BNB etc.
Sometimes I feel I won't be bothered to calculate coz it's impossible for my mind to do all these calculations. If I ever get asked, I will ask the Tax man himself to do this most difficult task of finding out actually how much I should be paying. I think even they will leave me alone rather than going through such difficult task.
Anyway, the cryptocurrencies value can go 99% down by the time tax man finally be able to do all the calculations of my crypto gains, so how can they justify I have made profit or loss in crypto investment? It's like a gamble in some sense coz the value of these cryptocurrencies goes up and down daily like crazy. Today you feel you have made profit and tomorrow you lose it. How to pay tax on such ? Lol.
This sheds light on taxes thank you for the video 👍
You're welcome sykPaul
when does hmrc decide you got to pay income tax over capital gains? how many transactions?
When it is clear that your primary source of income or a large part of your regular income is from trading rather than traditional business.
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
Would I still need to file for texts even if CG are below the taxable allowances?
From the self-assessment form for Capital Gains (SA108, link below):
"Fill in the ‘Capital Gains Tax summary’ pages if:
• you sold or disposed of chargeable assets which were worth more than £49,200
• your chargeable gains before taking off any losses were more than £12,300 (‘annual exempt amount’)"
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974133/SA108_English_Notes_2021.pdf
I am hoping someone could confirm I am working CGT out correctly here. I am taking a hypothetical scenario: So .... Single Man from England on a Gross Salary of £40,000 less his Personal Allowance of £12,570 mean his Taxable Income is £27,430. Lets say his Capital Gains Profit is £35,000 less his CGT Allowance of £12,300 means £22,700 is Chargeable. So this would mean that for CGT Calculation purposes he is at £27,430 + £22,700 = £50,130 (so under the £50,271 Higher Rate Tax) which means he pays 10% on the £22,700 = £2,270 in Capital Gains Tax? If I am correct on this I am delighted!! lol. If I am wrong could someone explain where I am doing wrong. Much appreciated guys! Cheers
It is £40k plus £22700. So you pay 20% of £22700
@@adammitula9710 I’ve now had it all checked out. I think you are wrong Adam.
@@ProfRogers yes, you are correct. 20% starts with £50271. I read it again. Sorry for misleading.
Thanks for the info, I have a question, if I retire and leave the UK, then cash out of crypto to a bank in that country, do I have any tax liabilities in the UK, I think I would have to pay for this answer but I'll ask anyway, lol, ta.
Hi Ian, as we mention in the video, if you are a UK tax resident in a year then you will be subject to capital gains tax and all other associated taxes.
Just move to Portugal rent a place. Stay for at least six months and then sell. Zero cap gains tax then.
Or just convert to Monero 😉
@@MrMonero Why Monero?
@@giovanaamelia8483 a little research will enlighten you 🤞🏼
@@MrMonero i saw that but I need some enlightmenth what is the best way to switch all my coins to money the better way (even if. I pay or not taxes) any recommandations? X
any advice on taking defi gains?
Thank you for the video it was brilliant, if my gains on Crypto are below a certain threshold, lets say £1000, do I still need to complete a capital gains tax assesment? I am unemployed and have never earned enough in the jobs I have had to have to pay tax before.
You either need to make gains exceeding the Capital Gains allowance (£12,300), or make any trade with a nominal value exceeding £49,200. See the Capital Gains self-assessment form (SA108, link below) for more details:
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974133/SA108_English_Notes_2021.pdf
What if you are a company and trade in crypto only in exchange? Do you value the crypto at year end and get taxed on the gains/loss?
Whether the owning entity is a company or individual is not important. Capital gains are made at the time of disposal. So suppose you, an individual, bought 10 BTC for £3,000 in 2015, and want to sell it now, in 2021, for £400,000. That's a single event that will result in a single chargeable gain of £397,000, which will be subject to Capital Gains Tax under 2020-2021 tax law. In particular, you will exhaust your Capital Gains allowance of £12,300, and the remaining £384,700 will be taxed. If you were a company instead of an individual, this would just affect your allowances and tax rates, but the chargeable gain is still £397,000.
To prevent entities from working around this by selling their holdings shortly before the end of each tax year and then buying them back shortly after the start of the next tax year, there is a rule (known as the "30-day rule" or "bed-and-breakfasting rule") which mitigates this. It states that holders must remove their exposure to the market for a minimum of 30 days before any gains are crystallised in the eyes of HMRC. Else, the sale followed by purchase within 30 days is treated as a short, and is itself a chargeable event.
Thanks for informative videos. How should I report yields and rewards which are in addition to any profits?
Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?!!!
@@jessicawiley5797 Thanks for reply but no I don't think you will know me. Who knows how the UA-cam algorithm works!
Oh.... I'm Jessica Wiley from Palm 🌴🥥 Beach 🏖️⛱️ Gardens Florida 🇺🇲, I am a professional market analysis and expert binary trader 📈...........How about you and where are you from?
Thanks for the video. Once I sell my crypto asset can I gift the profit I made to my wife? If yes what is the maximum amount
In UK law, including tax law, all assets held by a married person are joint property of that person and their spouse. You cannot gift your possessions to your wife in tax law; they are already jointly hers.
Ok but what if you gifted a friend or your child b4 you died just simply gave it away the profit you made
Thanks for the great info.
Hi Derek, we're glad it was helpful and thank you for your encouraging comment.
Thank you for the video.
Glad we could help Usman!
@@tonydCFO could you also do a video on vat return filing for amazon business where amazon already takes off vat and pays to HMRC. What are we supposed to file for when vat amount already paid to HMRC.