Please let us know in the comments below if you have any questions about UK crypto tax based on this video that we can try to answer, either here or in a future video. Keep an eye out for parts 2 and 3 of the Q&A coming soon!
If you know about the Ronin Blockchain (One of the Top in active users). Koinly doesn't support it and I can't workout how to make the csv export file they provide to meet koinly format requirements cause that file is unclear (at least for me). Any idea about this subject? Might be to specific. Thanks
Fantastic... thnx James.... took me this long to catch up on this Tax Series video..... but very important topic for the next few months whilst in bull market 🏆
Interesting that as soon as you dispose/sell your crypto and make a gain (eg sell Crypto within an exchange) that UK HMRC want to be paid in fiat and yet many, many UK banks are making it harder and harder to off-ramp into fiat!!! It would be interesting to know the various methods folk are using for off ramping from crypto into UK fiat £pounds. Mine is currently: Swissborg as the excahnge, sell within there into UK fiat £pounds, transfer to Monzo and then either use Monzo as the holding bank or transferring from Monzo to Natwest. Obviously that could change should either Monzo or Natwest change their minds!!!!
Exactly, it will get to a crunch point where someone makes 100x on some MEME coin but has no way to pay the UK tax because they can't convert to FIAT legitimately! EDIT: I'll share my off ramp route. Any exchange (I use about 4 CEXs regularly) > NEXO (change to GBP) > HSBC. But I can also use a credit/debit card from NEXO for all everyday purchases anyway. I'm not affiliated with NEXO in anyway and they've just added a £5 charge for FIAT withdrawals which I'm not happy about but I just use their credit card.
i use a similar method, i transfer USDT to Coinbase then exchange USDT to GBP and withdraw to Monzo then transfer to Santander. I bet Monzo have gained a massive amount of customers being one of the only crypto friendly banks. I hope they dont get pressured by the UK government to turn anti crypto.
I've been scammed so many times. Who knows where those coins have ended up. How do you prove that those coins are no longer yours so you do taxed on them?
Well, if you ain’t got your crypto, you can’t sell it and incur a taxable event. However, I think you could be saying that the Inland Revenue would ‘see’ the on chain transaction and assume it was you !! The scammers sell your stolen assets but it looks like you could have done it, and now you owe taxes for it. How to prove this wasn’t you - IS A GOOD Question which I hadn’t considered until now. Anyone here got a good answer?
Usually via a police report and reporting to Action Fraud can help. You MAY be able to make a negligible value claim as your beneficial ownership of the assets would be zero and therefore a loss may be claimable
Hello James . Great content and information , Thank You . Am I correct in thinking that If I sold my sole house in the UK and retired abroad, as long as I resided outside the UK for 5 years and never exceeded 180 days to visit in any tax year I would be exempt from Crypto or specifically Bitcoin CGT if I Transferred from my cold wallet ?
Hi, thanks for the great question and I'm glad the video was useful! I am actually planning to do a video in the future specifically looking at moving abroad to avoid or reduce crypto taxes, and indeed most taxes.
It depends on the statutory residency test. We offer a service to help plan for this as it may be fewer than 180 days depending on ties. The first year is certainly likely to be lower as you'd have at least one tie of being resident in the UK for the previous tax year.
@@myna6680 Thanks for the information , my individual circumstances are that I am single , retired and my pension is below £ 12 570 so I m not in any income tax bracket . I read online a while ago that if I sold my sole residence in the UK so provable that I have relocated and not paying council tax or bills here , If I lived outside the UK for 5 years under those terms , I would then be exempt for CGT on selling BTC but could still visit for up to 180 days in any tax year but not exceed that . If I decided to move back at some stage of course I would still have to pay CGT on selling BTC on what may remain . I m not talking about from a HMRC linked exchange , but from a ledger . I expect different laws to play out over time from HMRC to prevent many people choosing to live in more crypto friendly countries and spend their hard hodled BTC etc . Thanks very much
Question , If bought one BTC say at 50K and it hit 200K if i then sold 0.25 BTC to recover my initial investment would it be subject to pay capital gains tax
Thanks for this, exactly what I was looking for. Submitted the form but there was no place to input referral if you select professional referral, maybe thats the wrong one.
what happen when you buy crypto and 10 years later you leave the uk to go, lets say argentina. assuming you held it for 10 years and when you reach the new country you cash it. what happen?
The timeline is almost irrelevant here. If yo dispose of the asset while not UK resident, it may not be taxable in the UK depending on a few factors. We have a specific package for this analysis.
Good video, what happens if you bought crypto while a uk tax resident, then sell it in another country once you have switched your uk tax residency. Portugal in my case where the tax is zero as its classed as cash, not an asset?
This is on the government website Unfortunately if you bought the crypto in the uk as a resident. You need to pay tax on that crypto still. Then you are a free person. If you don’t pay the tax. You can’t come back in the country or you could be held accountable for that tax bill if they are aware. It used to be after 15 years, then your safe to come back as it gets wrote off. My uncle went to Australia. And came back after 20 years and he is fine. It seems forgotten
Gifts are taxable on the gain/loss regardless. Though the actual amount gifted may entitle you to extended bands and even reinstate personal allowance if it is gift aided. Tricky one.
So i've made many BTC purchases over the last 2/3 years, and obviously, the value has fluctuated significantly during this period. If I now sell all my BTC and make a profit, how do I know the overall value of what I have sold? My assumption is that one has to calculate the average amount spent on BTC purchases. Any ideas?
Most crypto exchanges (assuming you've bought on an exchange) with have the option for you to download your transactions in a crv file. You can upload these files onto crypto tax assistance companies software and it will crunch the numbers and spit out what you owe in tax so you can complete your tax return.
We get this a lot. Bacause everything is on the blockchain, you should be able to obtain the data, use software, reconcile the data and then make the appropriate report. This is exactly what the bulk of our service is as historical reconciliation is necessary for correct current figures.
Interesting, thanks. Sorry if this is off topic, but I have a question: I have USDT in my Okx wallet, I want to withdraw it to Binance. But I don’t know how to do this correctly so as not to send them somewhere without a trace.. There is only a phrase for this wallet: head isolate sound end kit industry choice festival limit stable dolphin derive. Can anyone describe how to do this correctly and safely?
Thanks A lot James. Literally cannot appreciate your videos enough. Please May Ask if a person is a day trader making about 10 trades a day in profit wether Spot or Futures regardless, Are they reporting this on daily basis or When exactly they have to report? If someone SWAP a crypto with another crypto in last tax year but did not report and made over a £1000 by swapping but did not Cash Out in bank account, then will there be a penalty now if they report the SWAP now?
Good question. 1. It is unlikely your day trading counts as a sole trade. 2. You would report your crypto dealings to HMRc if you a. Have tax to pay or b. have proceeds over £50,000 (£49,200 for 2023 tax year and prior).
There is no such thing as swapping your crypto. You SOLD it for another CRYPTO. (In the same way as you SWAP your crypto for FIAT, you didn’t do this you sold it for FIAT) Hence it will be a taxable event. See GOV.UK rules.
I have just formed a limited company for crypto mining and I’m in the UK 🇬🇧 but have been turned down by 3 banks for a business account any suggestions please.
Lets assume for example that I purchase 5 ASIC miners and install them abroad somewhere , while still staying here in UK. The asic miners would be my own , but they would be inside large mining storage house with many hundreds more from other people and a service provider would manage my asic miners and electricity for me , I would just pay the setvice fees ( electricity and maintenance of miners + their repairs if needed ) . My question is , would I still be considered as hobby miner or business miner? And my question number 2 , is there really a way hor HMRC to find out about it since all of my mining rewards would come straight my private hardware wallet. ?
1. If it is in your personal name and you are UK resident, you are subject to UK tax on your worldwide income perhaps with some double taxation relief if paying taxes elsewhere too. 2.Not enough information here but this is not legal.
@@myna6680 thanks very much. Now One more question as I am complete novice when it comes to mining and paying taxes by self assesment. Now I know it will be classified as income tax so I need to know if I can reduce the total tax by deducting my expenses ( cost of purchasing asic miners , their maintenance and electricity , various mining pool fees and other related fees ). ??
Will I be abel to deduct my expenses when claculating income tax at the end of financial year? asic miners are VERY expensive and so is the monthly cost of running them. Please
Do I even need to report if investment as less than 1000 pounds, and profit made was below 200 pounds for a particular financial year..?..the reason being i invested crypto towards the near end of that financial year.
You MIGHT. If you traded it 50 times then the proceeds would be above the threshold. (£50K proceeds) technically. If this is the case, then I would call and ask HMRC as they are unlikely to want a report if this is the only reason you need a tax return. Though technically, it is a requirement to report.
No, but the exchange will as far as I am aware. Numerous exchanges sent out emails saying that if you were to withdraw more than 5,000 I believe they would notify HMRC
Since posting this I have discovered CARF. The crypto asset reporting framework. Google it. At the moment it seems that Exchanges are obliged to tell tax authorities of sales of over 5k on request but after 2027 they will be obliged to let the tax authority in the country in which they operate know of all sales. The tax authorities of all countries signed up to CARF will exchange data.
Question do the rich pay tax ? When in Rome Do as the Romans Do. The only reason for tax is to keep the working class poor an enslaved an if you think you are not a slave then your a fool .
Totally agree. Rishi Sunak paid a lower tax rate (23%) than me last year on an income of 2.2 million. They lowered the capital gains exemption to capture more of us plebs into paying tax but a billionaire would still only pay 20% capital gains. It's an absolute con.
