Topic: CRYPTO PROFITS & UK TAX (Read 127 times)

Tax will be counted annually in every financial year which has start and end days defined by your government and Tax Authority. If the day you cash out is exceed the previous tax report day of a previous financial year, you can report your cash out to a next financial year.

Some guides above, and there is another guide on Internet for you.
Crypto Tax UK: Expert Guide 2025.

Question on paying tax on crypto gains in general.

Let’s say for example you invest £10,000 over a few years does that mean I can withdraw £10,000 back to my bank without paying any tax as that is the amount I invested?

With the bull run starting to heat up I haven’t withdrawn any money to my bank yet since I started investing so just want to know if I have to pay taxes straight away or if I only start paying once I have withdrawn the total amount I have invested?

haha Dear OP you do not need to make one more thread to ask the same question as Lucius has mentioned above one of your thread on the same topic like this. Paying tax in UK after bull run?. if you really feel you still not getting the desired answer you want you can ask there in the previous thread rather than creating a new one.

Besides all that, UK taxes are really too high where people have to pay a lot of taxes. About a month ago i was discussing the same thing with one of my friend that Uk is crypto friendly then is replied me but the taxes and fees are too high haha. But I think if we come out of the crypto space other taxes are also too high like property taxes, Your Yearly earnings Taxes. haha I have seen some people who do not store their any earning records online and they do not even use bank services so that they can avoid taxes. They just work for physical money and do not receive any online payment.

It does indeed seem odd, but considering that the following cycle would run from 6 April 2024 to 5 April 2025 it seems so, despite it looking weird (as per the example provided by the UK Gov website). That’s why I’d contrast the info with other articles and sources to see if they state the same (the link provided above to cointracking’s site does also exemplify along the same lines).

It’s not odd in other countries to pay takes on a given operation a year and a half down the road (i.e. if the operation took place at the beginning of the taxation cycle + 6 months or so until tax report deadline).

Hi DdmrDdmr,

So if I don't sell any until after 6th April this year, I don't have to submit this until 31st January 2026?

Doesn't seem right, sounds like a big gap having until 2026.

The UK Government website has a bunch of entries related to crypto on their website, which should probably be read throughout thoroughly:
https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual

Additionally, in relation to the calendar, there is an entry on the site that depicts how to deal with the dates related to the fiscal year (note that the example fiscal year is not up-to-date with the running cycle):
https://www.gov.uk/self-assessment-tax-returns/deadlines

The above link depicts that (abstracting the Year for a general approach):
-   The fiscal year goes from 6 April Year X to 5 April Year X+1.
-   Paper return for the above period should be submitted by 31/10/Year X+1
-   Online return for the above period should be submitted by 31/01/Year X+2

In practical terms, for the ongoing fiscal cycle it should go as:
-   The fiscal year goes from 6 April 2023 to 5 April 2024.
-   Paper return for the above period should be submitted by 31/10/2024.
-   Online return for the above period should be submitted by 31/01/2025.

In other words, if you sell now, you’ll need to see to the associated taxes for this fiscal cycle by 31/10/2024 or 31/01/2025 as per the above. If you sell after the fifth of April 2024, the dates shift forward a year.
Bear in mind that you may need to consider capital gains and/or income tax:
https://cointracking.info/crypto-taxes-uk/

Important Note:
Any advice read here should be contrasted with multiple sources (the more official the better), and not be taken for granted. I am good willed, but not versed on the matter in the UK.

It is not clear at all.

This is first time I have had to do my own taxes so want to be 100% sure.

UK tax year is 6th April - 5th April but we have to submit by 31st January.

Just not sure if its ok to take out some profits now or just wait till after 6th April so then I at least know I will have till 31st January to submit.

My thinking is that if you sell before the start of the new tax period, then you must also pay the tax for the period in which you sold. I don't know why there is so much confusion about taxes, and I find it even more strange that you don't go to your tax office and ask all the questions that interest you.

The UK is not some third world country where there are no clear rules about what interests you. All those who are not from the UK can only guess what and how you should act when it comes to tax.

If I were you, I would start with this link -> https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

Anyone? my porftolio hit +50% profit for first time yesterday and thinking of taking some profits and withdrawing to my bank for first time.

Does it make any difference if I withdraw to bank now or wait till new tax year which starts 6th April?

That is a different question , I am talking about selling between now and Bitcoin halving in April.

How and when do I pay taxes if I was to do so as its confusing.

Are you forgetting again that you have already asked similar questions? In case you haven't already received answers that satisfy you, wouldn't it be best to find a tax advisor who would then advise you when it comes to taxes?

Paying tax in UK after bull run?

Thanks but yeah I have seen these links , I am just unsure regarding my initial question.

I am not definitely going to take some profits in the next few months but if we start pumping then I might do and just want to know when I will need to pay tax by.

I'm not living in the UK but after a bit of research, I found a guide on how to start there is a guide that I found on Google directly from the UK government you can maybe use it to start how can you pay the taxes and how to calculate them.

Check this link below.

- https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets

Also, check this link https://www.unbiased.co.uk/discover/personal-finance/savings-investing/uk-cryptocurrency-tax-guide-everything-you-need-to-know

I have been investing in crypto for just over 2 years now and have yet to cash out any profits to my bank but thinking of doing so soon.

I am not quite sure though when it comes to tax. The tax year in the UK is from 6th April to 5th April however we must declare by 31st January.

Now that the 31st January has passed, if I was to cash out some profit between now and 6th April, when would I have to pay tax by?