This is my understanding of it.
When selling your bitcoins in the UK you pay capital gains tax on the profit. If you're a basic rate tax payer (i.e. you earn less than £45,000 per year), then you pay 10% CGT.
Example:
You buy 10 Bitcoins for £5 each many years ago.
You then sell 3 of these Bitcoins for £45,000.
You then deduct the cost of the Bitcoins £45,000 - £15 = £44985
You're allowed £11,300 tax free, so 44985 - £11,300 = £33685
You pay 10% tax on £33685 = £3368.50 tax.
Theoretically, if you had a partner who you trust and also is a basic rate tax payer, then they could also sell the above amount and pay 10% CGT.
In total you could sell around £90,000 per year between you both and pay 10% tax. If you're patient enough do this every year, rather than selling all at once.
I'm happy to be corrected if anyone now differently.
Topic: Cryptocurrency profits and tax in the UK? - page 2. (Read 500 times)
Do you have to pay tax if you exchange Bitcoin for Ethereum (for example)? The funds are still in crypto but they've been traded for a different crypto.
I don't think you have to pay any tax if you trade one cryptocurrency for another
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
This is incredible!
Yeah definitely! I have been to see three different accountants in the UK and two of them had never heard of cryptocurrencies and one of them had heard of it but didn't know the tax implications of it. If you don't declare the capital gains tax and get caught it could cost you much more than it would if you had just paid the tax, so more research is needed.
Just need to understand the tax implications of buying things direct with Bitcoin, if you can legally avoid converting to GBP and can avoid paying CGT it is definitely worth doing. Just can't find anyone who knows the answer for sure.
Wow, great research! We need to do this for other major countries!
Do you have to pay tax if you exchange Bitcoin for Ethereum (for example)? The funds are still in crypto but they've been traded for a different crypto.
This is incredible!
Would the tax be part of the final sales price for the car? So you don't incur some additional tax liability because you're choosing to pay for the car with crypto.
You don't have to pay tax on it if it increases in value and you just hold it in crypto
Do you have to pay tax if you exchange Bitcoin for Ethereum (for example)? The funds are still in crypto but they've been traded for a different crypto.
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
This is incredible!
You probably have to pay tax based on the value of the car.
It's more interesting if you buy a Britannia gold coin. There is no VAT or CGT on that, and it has a nominal value of £100, but you will probably have to pay around £1,000 for one.
https://www.royalmintbullion.com/Products/Britannia/Gold/UKB18GOS
It's more interesting if you buy a Britannia gold coin. There is no VAT or CGT on that, and it has a nominal value of £100, but you will probably have to pay around £1,000 for one.
https://www.royalmintbullion.com/Products/Britannia/Gold/UKB18GOS
Would the tax be part of the final sales price for the car? So you don't incur some additional tax liability because you're choosing to pay for the car with crypto.
I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
The answer to your question directly depends on how and where you will change your bitcoins to buy a car or something else. Now there are a large number of independent exchangers and it is always possible to negotiate a personal meeting with the seller about the method of payment. You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
If the buyer is willing to accept bitcoins directly and you swap the Bitcoins for the car without touching GBP do you still have to pay capital gains tax?
good question ... but I think it is better looking for a profissional legal advice, a good lawyer, just to be in the safe side ...
What’s the difference between tax avoidance and evasion, is tax avoidance legal and how do the schemes work?
https://www.thesun.co.uk/money/4851248/difference-between-tax-avoidance-evasion-legal-schemes/
if powerful people can do it ...
overseas tax havens ( The BBC has revealed that the Queen's estate has used overseas tax havens )
http://www.bbc.co.uk/news/uk-41883472
bitcoin is somesort of 'cypherpunks city'
What’s the difference between tax avoidance and evasion, is tax avoidance legal and how do the schemes work?
https://www.thesun.co.uk/money/4851248/difference-between-tax-avoidance-evasion-legal-schemes/
if powerful people can do it ...
overseas tax havens ( The BBC has revealed that the Queen's estate has used overseas tax havens )
http://www.bbc.co.uk/news/uk-41883472
bitcoin is somesort of 'cypherpunks city'
Isn't it a little bit obvious? You can not pay taxes for seeing the price going up while you are holding, it would be irrational.
You are OBLIGATED to pay taxes when you withdraw those bitcoins, if you cash them all by your bank, at the moment that you get called by the bank to justify why and how did you got those funds.
Something like that is happening on my country, when you want to cash out, the bank is going to call you to ask you how did you got those bitcoins.
You are OBLIGATED to pay taxes when you withdraw those bitcoins, if you cash them all by your bank, at the moment that you get called by the bank to justify why and how did you got those funds.
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
You have to pay tax on the "profit" made when you sell it back to GBP
Something like that is happening on my country, when you want to cash out, the bank is going to call you to ask you how did you got those bitcoins.
I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
The answer to your question directly depends on how and where you will change your bitcoins to buy a car or something else. Now there are a large number of independent exchangers and it is always possible to negotiate a personal meeting with the seller about the method of payment. You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
You probably have to pay tax based on the value of the car.
It's more interesting if you buy a Britannia gold coin. There is no VAT or CGT on that, and it has a nominal value of £100, but you will probably have to pay around £1,000 for one.
https://www.royalmintbullion.com/Products/Britannia/Gold/UKB18GOS
It's more interesting if you buy a Britannia gold coin. There is no VAT or CGT on that, and it has a nominal value of £100, but you will probably have to pay around £1,000 for one.
https://www.royalmintbullion.com/Products/Britannia/Gold/UKB18GOS
I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You don't have to pay tax when you trade one cryptocurrency for another
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You don't have to pay tax when you trade one cryptocurrency for another
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
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