in germany it is that way:
Every trade, regardless if it is against fiat or crypto, is taxed, if you make any profits compared to your fiat value.
You can imagine it this way when you sell BTC to buy ETH:
Divide it in your mind into selling btc at fiat market price and buying ETH at fiat market price (if no fiat market price for altcoin exist, calculate fiat price with btc and actual price).
The taxed profit here is the proft you make with your btc. you bought them some day and now selling them.
And here you do not pay capital gains (since bitcoin is not a currency), you add profits to your income and pay normal income tax (bitcoin sale is "private sale").
But if you holded your coins more than one year, the profit is taxfree.
Topic: Capital Gains Tax in United Kingdom for Cryptos (Read 522 times)
i find it kinda strange that you'd have to pay capital gains when trading between crypto. all those gains are still unrealised until you turn them into pounds.
you should get a second professional opinion before doing anything else. i wouldn't listen to someone who has no experience in it though he could well be totally right.
you should get a second professional opinion before doing anything else. i wouldn't listen to someone who has no experience in it though he could well be totally right.
Does anybody know if and how Capital Gains Tax applies for cryptocurrency trading? I am interested in how it works in any part of the world but the most useful information for me will be about UK, because that is where I live. Please specify your country when you answer, thanks.
I have an accountant who works in a tiny office in this small town that I live in. He certainly isn't a specialist in cryptocurrencies. He came to the conclusion that I would have to pay capital gains tax. He also told me that the tax is calculated at the time of trade, even if the trade is between BTC and altcoin.
Many of you might respond to this by saying 'don't bother, how will they ever know'. I am aware of this logic and you have a point, but I have decided that I want to play it safe and abide by the law so I don't have to keep looking over my shoulder for the rest of my life.
What conclusions have the rest of you come to regarding Capital Gains Tax?
I have an accountant who works in a tiny office in this small town that I live in. He certainly isn't a specialist in cryptocurrencies. He came to the conclusion that I would have to pay capital gains tax. He also told me that the tax is calculated at the time of trade, even if the trade is between BTC and altcoin.
Many of you might respond to this by saying 'don't bother, how will they ever know'. I am aware of this logic and you have a point, but I have decided that I want to play it safe and abide by the law so I don't have to keep looking over my shoulder for the rest of my life.
What conclusions have the rest of you come to regarding Capital Gains Tax?
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