Topic: Cashing out profits & Tax in the UK? (Read 135 times)
No wonder some people don't want to use a centralized exchange, the only way the law can get you to avoid tax payments is through those big exchanges that have access to your KYC info and I believe Coinbase is one of them who don't joke with this, I also read that HMRC ( Her Majesty's Revenue and Customs )only comes after you depending on how your coins and tokens are used.
Hi again, another question.
If for example I had invested £5,000 and I decide to cash out £5,000 once my portfolio 2x and just leave the profit on exchanges , I do not need to pay tax on this £5,000 I take out do I?
If I invest £5,000 and then take out £5,000 that is not me taking out profit is it, it is me taking back my investment?
I have friends in the UK and I heard from them that there is indeed taxes on buying crypto in the UK or even if you plan to hold the coins for a very long time, my advice is too keep a record of your transactions always, it also depends on the amount we are talking about here, I heard the tax is 10% to 20% if you making capital gains from crypto and for additional incomes from crypto you could be paying more, it depends on the transactions you've made..If for example I had invested £5,000 and I decide to cash out £5,000 once my portfolio 2x and just leave the profit on exchanges , I do not need to pay tax on this £5,000 I take out do I?
If I invest £5,000 and then take out £5,000 that is not me taking out profit is it, it is me taking back my investment?
1. Transactions you made.
2. Tax that applies
3. Income tax
Do your own research.
I don't know how many transactions I will have in total but it will be a lot.
Suppose I will just have to go through them all and record each one when I decide to cash out profits next year when bull run starts.
Hi again, another question.
If for example I had invested £5,000 and I decide to cash out £5,000 once my portfolio 2x and just leave the profit on exchanges , I do not need to pay tax on this £5,000 I take out do I?
If I invest £5,000 and then take out £5,000 that is not me taking out profit is it, it is me taking back my investment?
I have friends in the UK and I heard from them that there is indeed taxes on buying crypto in the UK or even if you plan to hold the coins for a very long time, my advice is too keep a record of your transactions always, it also depends on the amount we are talking about here, I heard the tax is 10% to 20% if you making capital gains from crypto and for additional incomes from crypto you could be paying more, it depends on the transactions you've made..If for example I had invested £5,000 and I decide to cash out £5,000 once my portfolio 2x and just leave the profit on exchanges , I do not need to pay tax on this £5,000 I take out do I?
If I invest £5,000 and then take out £5,000 that is not me taking out profit is it, it is me taking back my investment?
1. Transactions you made.
2. Tax that applies
3. Income tax
Do your own research.
Hi again, another question.
If for example I had invested £5,000 and I decide to cash out £5,000 once my portfolio 2x and just leave the profit on exchanges , I do not need to pay tax on this £5,000 I take out do I?
If I invest £5,000 and then take out £5,000 that is not me taking out profit is it, it is me taking back my investment?
If for example I had invested £5,000 and I decide to cash out £5,000 once my portfolio 2x and just leave the profit on exchanges , I do not need to pay tax on this £5,000 I take out do I?
If I invest £5,000 and then take out £5,000 that is not me taking out profit is it, it is me taking back my investment?
Anyone from UK who can confirm?
There’s a tax megathread in r/BitcoinUK, see: https://www.reddit.com/r/BitcoinUK/comments/ppf7k1/tax_megathread/
However try to still verify the information before you trust it. I imagine there should be supporting articles/guides for general information they could point you to.
I created a similar thread a while ago, but for my country, Greece. You haven't mentioned how much money you're talking about; even a mere estimate would be enough. If it's a small amount, there's a high chance no one will bother. However, I'm not sure how strict your policies are and how closely monitored your income and banking services are if you were to withdraw a large amount of money from an exchange to your account. If you are to pay taxes, you'll have to declare your capital gains and pay taxes on that amount; it should be about 10–15%; someone from the UK or a simple search may reveal the exact percentage.
A few users also suggested using a P2P exchange or even splitting your profits into smaller transactions and exchanging them in person (which requires extreme caution).
A few users also suggested using a P2P exchange or even splitting your profits into smaller transactions and exchanging them in person (which requires extreme caution).
I have been in crypto 14 months now and yet to cash out any profits but I am just wondering when I do so how the tax works? Do I have to pay that straight away or do I have months after cashing out to pay the taxes on my profits?
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
In the UK, the tax treatment of cryptocurrency is subject to HMRC's guidance on cryptoassets. HMRC considers cryptocurrencies to be assets, and therefore, profits made from buying and selling cryptocurrency are subject to capital gains tax.
When you sell your cryptocurrency, you must calculate the capital gain or loss on the disposal of the asset. The capital gain is the difference between the sale price of the cryptocurrency and its original cost, including any fees and transaction costs.
In the UK, you have an annual capital gains tax allowance, which is currently £12,300 for the tax year 2022/23. Any capital gains below this allowance are tax-free. However, if your capital gains exceed the annual allowance, you will be required to pay capital gains tax on the profits above the threshold.
You will need to report any capital gains tax liability on your self-assessment tax return, which is due by January 31st following the end of the tax year. If you fail to report your capital gains tax liability or submit your tax return by the deadline, you may face penalties and interest charges.
Well I am not from the UK and I have zero practical knowledge about how tax works in your country. But I found a webpage with details about crypto tax of the UK.
You can check this out so you can have a better understanding of how crypto tax works in the UK- https://www.unbiased.co.uk/discover/personal-finance/savings-investing/uk-cryptocurrency-tax-guide-everything-you-need-to-know
Also, if it is possible, get advice from a legal tax advisor
You can check this out so you can have a better understanding of how crypto tax works in the UK- https://www.unbiased.co.uk/discover/personal-finance/savings-investing/uk-cryptocurrency-tax-guide-everything-you-need-to-know
Also, if it is possible, get advice from a legal tax advisor
Anyone from UK who can confirm?
I have not cashed out anything it is just on exchanges.
I have not cashed out anything it is just on exchanges.
I have been in crypto 14 months now and yet to cash out any profits but I am just wondering when I do so how the tax works? Do I have to pay that straight away or do I have months after cashing out to pay the taxes on my profits?
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
In my opinion, you should discuss this legal matter to a local legal expert to make sure that you not violating your law in regards with tax. You should pay taxes base on the annually or on the time frame given by your government and not based on when do you feel you will cash out because you might get in trouble in case someone audit you and saw a cash balance sitting on your exchange for a long time untaxed.
I’m not an expert with your law. I highly suggest to play safe and consult a legal expert.
I have been in crypto 14 months now and yet to cash out any profits but I am just wondering when I do so how the tax works? Do I have to pay that straight away or do I have months after cashing out to pay the taxes on my profits?
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
At the moment I am just under break even, if my portfolio was to 2x in the coming months for example and I decide to cash out what I put into the market and leave the profit. How does that work?
I want to be ready for when the time comes to cash out and understand how and when I need to pay the taxes.
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