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UK – Don’t forget CGT allowance year ends soon

Hi Uk crypto traders and hodlers.

Don’t forget that by April 5th the tax year ends, and your Capital Gains Allowance resets.

This current year the allowance is £12,300.

So if you were planning on cashing in more than that, try and manage it so that you maximise both this year and next years allowance. Otherwise you will need to pay between 10 and 20 % on any profit made above the allowance.

More info: https://www.gov.uk/capital-gains-tax



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9 Comments

  1. Avoid CGT buy purchasing gold with your crypto. Sell the gold money in cash or straight into your account. All good. If you need the link for purchasing the gold via crypto let me know ill pm ya. Just saved ya money

  2. Remember to take off any initial investment in your calculations. It’s only on the profits.

    What I don’t always understand is how you calculate your initial investment, if only selling a portion of your coin. I guess you can either pro-rata it, or use the entire initial investment up front, with any future withdrawals counting as pure profit.

  3. If we’ve invested and not yet cashed those cryptos back into FIAT do you still need to declare?

    I’m well under the 12.3k allowance but just wondering how it works, by example I’ve got some coins that have appreciated in a wallet but as I’ve not seen the gain in GBP should I be filing?

  4. Hopping onto this, staking, airdrops, really everything is seen as taxable, and it’s taxed as income (as opposed to savings which would be tax free for first 1k).

    It’s worked out at time of when you got it too, so if you’ve staked Ada for a few months, each epoch that resulted in a pay out its income that should be declared

  5. Is the 12.3k allowance not including other income? I thought capital gains tax kicked in as soon as you made 12.3k from any income?

    If you have a stocks & shares isa you can make 20k tax free a year on top of any other earnings? So if your job was solely trading crypto, you can take 12k tax free profit per year then day trade stocks in an isa up to 20k profits then only pay 10% CGT after earning 32.3k per year through trading?

    But if you have a job you pay 10% CGT on any gains because you’ve used your 12k tax free allowance from working?

    Also, if you have used your 12k allowance through employment, you can make 1k extra per year through other means such as a hobby (like trading?).

    Does anyone know if that’s the case?

  6. So honest noob question, do they automatically charge you the percentage or you have to provide details of how you made that much (i’m talking about some people with thousands of trades on binance for example). I’m new so idk.

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