Tax in Crypto
I’m located in the UK.
With the bull run getting closer (or maybe it’s already started), there will be plenty of profits to take if that’s what you want. So, what are people doing about capital gains tax? I know the personal allowance is dropping from £6,000 to £3,000.
Overall, I just wanted to get some advice and spark a discussion about it.
Thanks in advance.
At least having to pay taxes means you’re making money, which is a nice problem to have I started investing at the peak of the last bull run and all I’ve seen are losses.
Maverick said:
At least having to pay taxes means you’re making money, which is a nice problem to have I started investing at the peak of the last bull run and all I’ve seen are losses.
Don’t forget you can use losses from the previous tax year to offset your profits in the next one
Maverick said:
At least having to pay taxes means you’re making money, which is a nice problem to have I started investing at the peak of the last bull run and all I’ve seen are losses.
How are you still only seeing losses?
If you had been dollar-cost averaging with most of the top 50 coins over the last four years, you would likely be in profit.
If you have a spouse, you can transfer half your crypto holdings to them which gives you both a £3,000 capital gains allowance
Holland said:
If you have a spouse, you can transfer half your crypto holdings to them which gives you both a £3,000 capital gains allowance
How does one transfer their holdings?
Holland said:
If you have a spouse, you can transfer half your crypto holdings to them which gives you both a £3,000 capital gains allowance
How does one transfer their holdings?
Just send half your Bitcoin to a wallet in your spouse’s name.
Holland said:
If you have a spouse, you can transfer half your crypto holdings to them which gives you both a £3,000 capital gains allowance
Isn’t that a taxable event?
Holland said:
If you have a spouse, you can transfer half your crypto holdings to them which gives you both a £3,000 capital gains allowance
Isn’t that a taxable event?
No
If you and your spouse are living together, any transfer of an asset between you does not create a gain or loss for the person transferring it.
I’d recommend talking to an accountant.
betafuture said:
I’d recommend talking to an accountant.
Agreed. I’m not looking for specific advice, just hoping to have a discussion about it.
What tax percentage applies after £3,000 in the UK?
Kelebwhite1 said:
What tax percentage applies after £3,000 in the UK?
I think it depends on your total yearly income. If it’s under £50,000 a year, it’s 10% over that it’s 20%. But I could be wrong about that.
@Dax
It’s 18% starting October 30th and 24% for higher earners - https://www.gov.uk/capital-gains-tax/rates
Nyle said:
@Dax
It’s 18% starting October 30th and 24% for higher earners - https://www.gov.uk/capital-gains-tax/rates
That’s quite funny I agree we should tax the super wealthy more, but it feels like regular folks get hit the hardest We’ve taken risks investing and are finally seeing rewards only to be slammed with tax.
@Dax
Totally agree, it’s a ridiculous situation
@Dax
They raised those rates as of October to 18% and 24% now Gotta love the UK
Jane said:
@Dax
They raised those rates as of October to 18% and 24% now Gotta love the UK
Yeah, that’s what I mentioned above. It’s absurd.
@Dax
Now the rates are 18% or 24% based on your tax bracket They went up in the latest budget unfortunately
@Dax
If you earn less than £50,000, it’s 18% more than that it’s 24%