Okay gang. If failed to find an accountant to speak on crypto and taxes on our Sunday Q&As so here are some resources to help reduce, if not help you pay 0 tax on your crypto. Everything that I mention is legal and can be researched more using the following links Capital Gains Tax Guide - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22000 Income Tax Guide - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto21000 Allowable Expenses - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22150 Airdrops - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22350 What is a disposal - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22100
@@conversationofmoney There are a couple of situations that you have to file. If you already file a self assessment then you will have to fill out the capital proceed section. Also, if your total proceeds in the year on capital transactions are more than 4x the annual exempt amount even if your gains are below it Of course in both of the above, there will be no tax if your gains are below the threshold
Great video and quite timely - This was what I was talking about recently with another crypto friend. Can I check where it states that you don’t need to declare cap gains if you are under the 12,300 threshold, not that I’m questioning your info, but if you happen to know the document I can point to that would be awesome. Thanks Pete 👌🏻
For more wealthy crypto friends that have a good portion of cash and great credit score, I would consider to move to Isle of Man, Giblartar or Channel Islands to have fair taxes over there unlike in rest of UK.
Nice clear video 👍. It’s been my understanding that if you have gains in BTC then buy ETH with your BTC, hold for thirty days then buy your BTC back you lock in your gains. If you can keep that under £12300 you never have any. CGT to pay. Effectively making full use of your allowance. Is that your understanding too?
@@conversationofmoney I get that it's volatile but would the volatility between ETH and BTC be less than compared to BTC to fiat or ETH to fiat? Something to look into...
Great info. Can anyone answer a question for me? I haven’t done a self assessment yet. When reporting previous years losses I just send the SA108 form in by itself? Or I need to send in a full tax report for those years too? 🧐
Even if stake had an ISA would the Crypto ETF be allowed to be held within a UK ISA? I thought US and UK ETFs have different reporting requirements hence no ARK ETF's in the UK? Also not sure how the FCA would respond to a crypto futures ETF considering crypto derivatives themselves are banned to retail investors in the UK, maybe they would allow if your exposure was through an institutional investor or maybe not.
It doesn't matter mate. The ETF is SEC approved so there is regulatory backing. The fact is you can buy that ETF now if you wanted to and there no restriction I'm aware of to stop you. The same as you can buy the ARK ETFs on Etoro. I also know of other crypto index funds you can buy right now, the providers aren't allowed to market to UK customers
@@conversationofmoney I thought you could only buy US ETFs from the UK on Stake if you're classed as a professional investor? On Etoro you can enter into a 1x leverage cfd on ARK ETFs but don't own the underlying asset as far as I am aware.
Hi Pete, I am not an advocate of cashFX at all but have to ask this question for clarity. If CashFX are paying out commisions in BTC to your wallet, after you have initially sent them BTC to open a package - would every commision being received in your personal wallet be viewed as a receipt of income from a tax perspective? Appreciate any help
Let's say I made £12k this year on ETH (which is bellow my CGT allowance) do i still have to inform hmrc or not as this is bellow my personal allowance?
I wouldn't cash in a loss unless absolutely necessary, It utter madness otherwise. The offsetting losses only works if you're making money, if you constantly taking losses you're burning cash for a benefit you're never going to qualify for.
I’m self employed , so would the crypto be a separate thing. So if I use my allowance (about 12k I think ) on my self employed business. Will I then get the allowance (of about 12k ) on my crypto separately ? Or was that used up on my self employment business? And I’d have to pay the full tax on all crypto gains ?
@@conversationofmoney so when people say you only pay tax on anything above personal allowance on crypto etc. Most people have used up their personal allowance on there employment (or self employment ) side . So basically on any gains most people will have to pay on the full lot at 20% tax .
@@swiftgames5382 essentially, yes, but not income tax is separate to capital gains tax. if both allowance are used then taxes will be due on the excesses on both.
Strangely enough, there are a few online services that claim they can prepare HMRC compliant tax returns by feeding them your crypto trades receipts, but there are no equivalent options to do the same with stocks.
Yes, but you'll be selling your holdings and that probably defeats the purpose. You can't buy and rebuy straightaway because there's a rule against that. You have to wait 30 days
So if i’m just gaining profits from investment in crypto and not the whole complicated shit with mining/selling. its just basically taxed same way as self employed right? where its your profit minus 12k personal allowances or i’m i missing something
Your personal allowance pertains to your income tax racket. The only relevance it has is in the rate you pay for capital gains and you will pay the relevant tax rate under income tax
I bought in 17 and again 19 and didn’t keep BTC transactions using 6/7 exchanges. No tax then was spurious. Was coming in the taxable nature to crypto . Then swapped coins endlessly. Maybe one thousand transactions. … on paper I’m level no profit. . Not up. But BTC is up year on year 3x. How know how declare , thanks. Chiefly BTC was bought inside 19k never claimed losses as not a business holding. So actually not up. I’m puzzled. Tax was never a thing. Self declared capital gains was only consideration then. However I don’t think I’ll sell. I’ll likely hold hodl and use when need. Like gold. Same same.
@@conversationofmoney if they do it'll be the compliant minority. Most ppl gambling on crypto treat it just like gambling and they are used to not paying tax on that so I seriously doubt the majority will pay tax until HMRC comes knocking. Most accountants don't know or don't want to know
@@RobertGillontheinterweb True, i have found an accountancy firm that is working in this space now. If people aren't paying taxes they're going to have a very rude awaken, hence the purpose of these videos.
@@RobertGillontheinterweb we should only be taxed when we convert to fiat. It will make everything simple...and can be done on exchange to fiat....I'm to confused about all this.....
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Okay gang. If failed to find an accountant to speak on crypto and taxes on our Sunday Q&As so here are some resources to help reduce, if not help you pay 0 tax on your crypto. Everything that I mention is legal and can be researched more using the following links
Capital Gains Tax Guide - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22000
Income Tax Guide - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto21000
Allowable Expenses - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22150
Airdrops - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22350
What is a disposal - www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22100
Great video mate. If our gains are less than the 12300 allowance do we still need to declare to HMRC?
Cheers
Yes if you earn over 900 you need to declare it
You don't have to, no.
@@conversationofmoney There are a couple of situations that you have to file. If you already file a self assessment then you will have to fill out the capital proceed section. Also, if your total proceeds in the year on capital transactions are more than 4x the annual exempt amount even if your gains are below it
Of course in both of the above, there will be no tax if your gains are below the threshold
Great video and quite timely - This was what I was talking about recently with another crypto friend. Can I check where it states that you don’t need to declare cap gains if you are under the 12,300 threshold, not that I’m questioning your info, but if you happen to know the document I can point to that would be awesome.
Thanks Pete 👌🏻
@@hfeuhweiufhwej Great contribution thank you. Just had a look at your channel are you on IG. I'd love to get you on a live Q&A
Appreciate the content brother!
I appreciate you fr watching
Hi mate are we not allowed to transfer a wallet to a charitable Trust to avoid tax that way?
For more wealthy crypto friends that have a good portion of cash and great credit score, I would consider to move to Isle of Man, Giblartar or Channel Islands to have fair taxes over there unlike in rest of UK.
Thanks Pete. Very informative!
Glad it was helpful!
Nice clear video 👍. It’s been my understanding that if you have gains in BTC then buy ETH with your BTC, hold for thirty days then buy your BTC back you lock in your gains. If you can keep that under £12300 you never have any. CGT to pay. Effectively making full use of your allowance. Is that your understanding too?
technically but crypto is volaltile so why sell and rebuy when you could be rebuying at way higher levels. It's not a reliable strategy
@@conversationofmoney I get that it's volatile but would the volatility between ETH and BTC be less than compared to BTC to fiat or ETH to fiat? Something to look into...
Great info. Can anyone answer a question for me? I haven’t done a self assessment yet. When reporting previous years losses I just send the SA108 form in by itself? Or I need to send in a full tax report for those years too? 🧐
I couldn't tell you unfortunately. I use an accountant for my self assessment
So basically we have income tax allowance £12500 or something and(plus) capital gains allowance £12300, right? They are not the same thing, right?
no they are separate from one another
Thanks a bunch, very useful.
Thanks
thanks for the video, what about Bitcoin Exchange Traded Note (ETN) this is supposed to be available in the UK?
They are banned in the UK
Even if stake had an ISA would the Crypto ETF be allowed to be held within a UK ISA? I thought US and UK ETFs have different reporting requirements hence no ARK ETF's in the UK? Also not sure how the FCA would respond to a crypto futures ETF considering crypto derivatives themselves are banned to retail investors in the UK, maybe they would allow if your exposure was through an institutional investor or maybe not.
It doesn't matter mate. The ETF is SEC approved so there is regulatory backing. The fact is you can buy that ETF now if you wanted to and there no restriction I'm aware of to stop you. The same as you can buy the ARK ETFs on Etoro. I also know of other crypto index funds you can buy right now, the providers aren't allowed to market to UK customers
@@conversationofmoney I thought you could only buy US ETFs from the UK on Stake if you're classed as a professional investor?
On Etoro you can enter into a 1x leverage cfd on ARK ETFs but don't own the underlying asset as far as I am aware.
@@mattybreeze1422BITO is a US ETF. I'm not sure what you mean with the leverage cfds on Etoro?
Hi Pete, I am not an advocate of cashFX at all but have to ask this question for clarity. If CashFX are paying out commisions in BTC to your wallet, after you have initially sent them BTC to open a package - would every commision being received in your personal wallet be viewed as a receipt of income from a tax perspective? Appreciate any help
you may be subject to income and capital gains
@@conversationofmoney Thank you
Let's say I made £12k this year on ETH (which is bellow my CGT allowance) do i still have to inform hmrc or not as this is bellow my personal allowance?
Have you looked at wrapping your crypto into an offshore asset protection trust?
If you are married does the holding of crypro have to be held in joint names in order to uses both £12,300 allowances?
No, the CGT allowance is individual
Is it possible to deposit gains into a cash isa? My thinking is that all deposits are tax free up to 20k
If you've already sold it and made a gain no.
If you have one crypto that is currently making a loss can you transfer that to another crypto without a tax penalty?
I wouldn't cash in a loss unless absolutely necessary, It utter madness otherwise. The offsetting losses only works if you're making money, if you constantly taking losses you're burning cash for a benefit you're never going to qualify for.
I’m self employed , so would the crypto be a separate thing.
So if I use my allowance (about 12k I think ) on my self employed business. Will I then get the allowance (of about 12k ) on my crypto separately ?
Or was that used up on my self employment business? And I’d have to pay the full tax on all crypto gains ?
Employed or self employed makes no difference. You only have one personal allowance
@@conversationofmoney so when people say you only pay tax on anything above personal allowance on crypto etc. Most people have used up their personal allowance on there employment (or self employment ) side . So basically on any gains most people will have to pay on the full lot at 20% tax .
@@conversationofmoney thank you, didn't know that
@@swiftgames5382 essentially, yes, but not income tax is separate to capital gains tax. if both allowance are used then taxes will be due on the excesses on both.
Strangely enough, there are a few online services that claim they can prepare HMRC compliant tax returns by feeding them your crypto trades receipts, but there are no equivalent options to do the same with stocks.
Please link if you can.
@@conversationofmoney
UA-cam keeps deleting the comment. I guess it's not scammy enough.
I'll try to post them one by one.
Recapdotio.
Koinlydotio
@@conversationofmoney I will send you an email. UA-cam keeps deleting comments and I have tried tweaking them 30+ times already.
Can we just withdraw below the £12300 amount within a given tax year? And do this each year?
Yes, but you'll be selling your holdings and that probably defeats the purpose. You can't buy and rebuy straightaway because there's a rule against that. You have to wait 30 days
@@conversationofmoney i'll wait 30 dayz then!
So if i’m just gaining profits from investment in crypto and not the whole complicated shit with mining/selling. its just basically taxed same way as self employed right? where its your profit minus 12k personal allowances or i’m i missing something
Your personal allowance pertains to your income tax racket. The only relevance it has is in the rate you pay for capital gains and you will pay the relevant tax rate under income tax
If I get to the stage I have to think about exceeding my capital gains allowance on my crypto earnings, I'll be a very happy bunny.
Thanks
The CRYSA will be a game changer when it arrives. I firmly believe it's a question of when rather than if.
CRYSA.. I like that !!! I hope it arrives soon
I bought in 17 and again 19 and didn’t keep BTC transactions using 6/7 exchanges. No tax then was spurious. Was coming in the taxable nature to crypto . Then swapped coins endlessly. Maybe one thousand transactions. … on paper I’m level no profit. . Not up. But BTC is up year on year 3x. How know how declare , thanks. Chiefly BTC was bought inside 19k never claimed losses as not a business holding. So actually not up. I’m puzzled. Tax was never a thing. Self declared capital gains was only consideration then. However I don’t think I’ll sell. I’ll likely hold hodl and use when need. Like gold. Same same.
1k transactions is nuts
@@conversationofmoney alternative to gambling. Imagine one betting each race each course daily. Or footy gamblers. Wasnt investing. was betting
Can I contact you regarding my tax return.
i'm not an accountant
No one talks about avoiding income tax with crypto
Like anyone is paying tax on crypto gains lol
Think you'll be surprised.
There's lots of new tax law around crypto as of last year or two
@@conversationofmoney if they do it'll be the compliant minority. Most ppl gambling on crypto treat it just like gambling and they are used to not paying tax on that so I seriously doubt the majority will pay tax until HMRC comes knocking. Most accountants don't know or don't want to know
@@RobertGillontheinterweb True, i have found an accountancy firm that is working in this space now. If people aren't paying taxes they're going to have a very rude awaken, hence the purpose of these videos.
@@RobertGillontheinterweb we should only be taxed when we convert to fiat. It will make everything simple...and can be done on exchange to fiat....I'm to confused about all this.....
This video has such low views. No one likes this topic xD