UK Crypto hub! They make it really hard to get into crypto to 'protect' the consumer, tax you if you somehow make any gains but you can gamble your house away on the horses and pay no tax on your winnings. You are right it's a joke.
And when you cash out and send the money to your bank, the bank says you can no longer bank with them as they don't like receiving money from crypto sales, but HMRC still expect you to pay your taxes from a bank account you no longer hold.
@@Wigalot It was easy to transfer money from your bank to the exchange and there was no limit on the amount. They have now limited the amount you can send to the exchange, so are controlling how you spend your money.
Couldn’t agree more man. Been in since 2019. Resent the UK regulations so much especially more so now with the reduction of cap gains tax dropping from 12K to 3K in the last couple years. 🖕🏼🖕🏼
Just like any other assets (property, art etc) you can offset losses against other realised capital gains. It is an asset, not an income, so you should not get a refund if the investment does not work out. Otherwise everybody would make investments as there would be no downside risk. By definition an investment has some element of risk.
countries like this will collapse, sooner or later, too much taxes in any form, will make wealthy people to leave the country, and only the poor people will stay.. that’s the society our politicians want for us
For all thos BTC critic's ... they all wish they could have bought it at 1k, 10k, 20k, 30k, 40k, 50k, 60k... just imagine how much gold you could buy with the amount of profits. Gold is not the future. It's too heavy and too slow. Crypto is the future. And you can beleive or not believe. But we can all agree that you and I would have been much better off had we bought BTC any time in the past. Now all that said. I think BTC goes to a million but it goes to 20k first. Any massive pullback in it... is a trade not a hold. Same for gold and sliver. Rich don't hold tops ... they trade........ I have managed to grow a nest egg of around 3b"tc to a decent 26B'tc in the space of a few months. Amidst this, the insights of a knowledgeable guide like that of Aria Cookings Crypto can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
Trading without professional guide is wrong, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.
We're looking to move to Panama. Low taxes, lovely weather delicious mangos 🥭 and papayas 😀 Need to spend $200k on property to get resident status. Worth it.
When Im finally in profit from this nightmare, I should be able to draw my initial back out without paying tax as I have a record of all the income I injected into Crypto...This money has already been taxed...After that Il happily buy somewhere to live in Portugal...They are much fairer over there
I don't know if you can do that though. Even if you invested £30k over the past 5 years, and you finally make profit and convert £35k worth of crypto back to GBP all at once. I think they still want to tax £32k of that by 18% right? I don't think they give a shit about the past? I can't find good information on UK long-term CGT If the uploaded could clarify this, it'd be nice.
The level of taxation is already reducing my saved up wealth and it is going to be more, please what assets can i buy to grow back my wealth and protect myself from this intense taxation
Thanks for the informative video, just a heads up if you can get your editor to bring down the volume levels of those swooshes or remove them.. I found it really hard to focus on what you were saying haha . Cheers
You forgot to mention the rules with wash trading. If you take a loss but buy back the same asset within 30days, you can no longer count the loss to offset any gains! This is mega important!!
Hi! Thanks for the comment - you're right! We have a video coming up where we cover how to calculate gains based on those rules. Hope you take value from it!
Transaction fees are deductible for individuals while there could be more options for business for example - it will depend on your situation - please consult with a tax professional as we cannot provide tax advice. Hope that helps!
One other thing! If you are a Ctypto investor then profit or losses are capital gains or losses, not income! If you are doing frequent trades and it is your sole source of income and you devote a lot of your time, its income. If only an investor your 12,570 income tax free amount is irrelevant!
I feel you could've zoomed-in and out and swiped left and right with the pan-control a lot more frequently to increase the number of viewers throwing-up on their monitors - true interactive viewing. Missed opportunity.
If you're trading on an exchange especially a exchange outside the UK the HMRC has no way of tracking your trades surely so until you remove your money from the exchange to your account surely you don't pay tax on it no matter how many trades you close and start right??
And if you've done ID verification on an exchange and given a UK address, expect the major exchanges, especially any that have tried going local in the UK (e.g. there was a Binance UK), to be fessing up transaction data to HMRC.
It’s easy to put it into a self invested personal pension. You can sell 3k per year before declairing for capital gains. Put you 3k into a Hargrovies landsdown sipp. The gov then gives you 25% tastes relief so you are up already! Then invest in miners, btc etf or whatever.
Thank you for watching. About your question, please consult with a tax professional as we cannot really give personal tax advice (we try to help with content to inform crypto investors).
You can’t. You have to buy ETFs BTC funds or buy a company share like Microstrategy in your ISA (they own over 330,000 BTC and constantly buying more).
What about other transactions that earn income? It's not only gains you have to report. Please check our UK crypto tax guide for more info: cointracking.info/crypto-taxes-uk/
Hello, I am little bit confused, start invest in Crypto since 2021,on the top of bull run, logic got a lot of loss, next 3 years still invest, portfolio some time it's on profit, some time loses, never fixed, just hold, never report to HMRC (didn't know), now hope in 2025 will get some profit, how will report, when will sell my usdt to gbp? I did some illegally when did not report last 3 years, I just invested, converted from one token to another one, but never get out in GBP(UK blocked all exchanges)
Hi there! I'm not sure I entirely follow your situation. However, please know that holding crypto without selling it not a taxable event. However, crypto-to-crypto trading is also a taxable event (as selling crypto for FIAT like GBP). Our suggestion is for you to track all of your trades with our software and work with a crypto tax professional to make sure everything is okay when reporting to the HMRC. We also have a video coming up explaining how to report to the HMRC when you haven't done so under the right deadlines. In the meantime, please reach out to a CPA to solve your specific situation (we cannot give catered tax advice).
@djtaylormade1195 They probably do. And then HMRC will send you a letter or an email asking you to engage into a contract with them by filling out a self assessment form.
Just to clarify ...i trade full time and a large amount of my income is from usdt margined perpetual contracts . As i am not swapping crypto as its a derivitive product i am using ....i know i am not liable to disposal taxes. I have been recorded my tax liability based on a usdt to fiat cash out using CGT as still hmrc doesnt seem to agree it should be taxed under income tax even though i am able to demonstrate monthly i am making regular trades and regular income. My question is as i keep seeing it referenced online is that crypto derivitives are classed as gambling in the uk therefor are non taxable (sounds ton good to be true ) What is the position on this as i dont want to continue filing AND paying tax i am not really liable for. Thanks in advance
@@OA-Wanted I will do especially since our CGT allowance is evaporating into nothing each year that goes by...en of the the day I didn't expect to get my answer on here after watching rest of this video. I think HMRC doesn't know a way of taxing derviritive product in the UK hence the bs " retsil trader ban ' for derivatives I'll pay a proper accountant and ill reply to this message let you know what they say ok
What qualifies for capital gains over income tax. I was given crypto for some help on a project. Does that mean I pay income tax on it, alongside whichever tax bracket I am in?
Hi! It all depends on the type of the transaction. For example, trading any crypto will lead to capital gains while earning any type of crypto will lead to income taxes as a benchmark rule. If you're paid compensation for your work, it would likely fall under income taxes, but please consult with a tax advisor as this is highly personal and we cannot provide tax advice. Hope that helps!
Just DCA into bitcoin , excluding bear market. Never sell . You can borrow against it on platforms like Ledn . Just roll it over . Borrowed money is not taxable . Number always go up .
What if you sell at a slight profit and then decide to reinvest in the same or different crypto currency without removing from a wallet or an exchange, Is this fine?
A conversion of crypto is a taxable event (disposal) in the UK. Please work with a professional to find the best strategy for you as we cannot provide tax advice.
Of course. If you spent 40 k and take out 100k your profit is 60. You would pay tax on that. But if you spend 130 and take out 130 you still supposed to.pay tax on individual crypto. So if you spent 10 on doge and cash out at 50 it's still 40.profit. Even though overall it might be negative. It's a nice problem.
Hi, you have to keep records of your trades somehow (look into working with a crypto tax professional). If you sales, those are taxable events (this it not tax/financial/legal advice).
You should be careful. As all crypto is on the blockchain for infinity it could be possible in the future for HMRC to use AI to go through all transactions to find unpaid tax. I think we are a long way off from that but they can go back 20 years I believe. If it's not a sizeable amount then I wouldn't worry as I have friends who were early adopters in this situation too.
What if you just convert to privacy coin like XMR on an exchange and then move funds to private wallet. How will they be able to track any taxable events after that?
Hi! Thanks for the question. Please be aware that converting into a "privacy" coin is still a crypto transaction, which is taxable in the UK. You can argue that authorities may not be able to track those trades, but that doesn't change the tax obligations/requirements. Hope that helps!
Hi! Could you please clarify? If you sell a leveraged position, it's still a disposal subject to capital gains taxes. However, we cannot provide tax advice - please consult with a tax professional about your personal situation.
No, unfortunately! YOU don't pay tax gifting it to him but he will take on the assets at their original value i.e. what you first paid for them. If he sells and makes a gain - tax for him!
Great video , I plan to give My wife some and hope she can use it as income allowance as currently she doesn’t work but chat gtp seems to suggest if she turned it into fiat under one transaction it would fall under CGT ?
Let's try to help! In what exchanges/platforms did you trade crypto? You have to start there and try to export your transactions with the help of crypto tax software. This will help determine the right gains/income you had throughout the years and with the help of a tax professional take care of the situation. Please let us knows the exchanges you used so we can provide further support.
@ to be honest these are holdings over the span of the last 7 years. I used dexes to buy them but eventually I just decided to cash out using usdt and a year later I got a letter from the tax man unsure how to proceed
@ to be honest these are holdings over the span of the last 7 years. I used dexes to buy them but eventually I just decided to cash out using usdt and a year later I got a letter from the tax man unsure how to proceed
@ to be honest these are holdings over the span of the last 7 years. I used dexes to buy them but eventually I just decided to cash out using usdt and a year later I got a letter from the tax man unsure how to proceed
That’s what billionaires do. The difference is that they set up their own profitable charity then donate their profits to their own charity and pay themselves a handsome salary as the CEO. Plus they accept donations from the public as well, and only a fraction of that goes to the cause. The rest goes to paying all the other employees within the charity. Usually the charity is focused on helping victims instead of fixing the problem. That’s what allows the charities to be continually relevant and be a never ending money generator. There’s no point in preventing cancer once and for all when you can spend decades allegedly looking for a cure and making billions in donations. Why stop cruelty to donkeys when you can get money to look after the abused donkeys. Every profitable charity you see on tv was set up by rich people to avoid paying taxes. I know lots of new crypto millionaires will do this too. The difference will be that many of them will be setting up charities for the right reasons, to actually make a difference and do some good in the world. That is my plan anyway and I know I won’t be the only one.
@@sswwiinnccee Spot on! That's why I never give to any charity organisation, I'm happy to give cash directly to a homeless person though where they will directly benefit from it in some way
So what about paying of a loan? There are exchanges that allow you to borrow (either loan or credit card) with your Crypto as collateral, and you can pay the loan in Crypto. Is that a non-taxable event?
Fyi for non-UK domiciles: normally (but now only for the first 4 years of UK tax residency), a non-domicile does not have to pay tax on offshore income that stays offshore. This does NOT apply to crypto, which they treat as onshore (because it's in the cloud and blockchains have no country or something). Illogical when its held on an overseas exchange, but that's the rule. Massive disincentive against crypto bros becoming UK resident. Only the residency rules themselves are more offensively stupid than this.
I read that Coinbase will report to HMRC any accounts that have received £5000 and more in crypto, and I'm assuming pretty much all exchanges must do the same...if ...a friend of mine let's say ...has all his crypto in a private wallet and sends 3-4k to different exchanges like coinbase,uphold ,binance,technically none of these exchanges would report to HMRC isn't it? Asking for that friend of mine 🤪
Crypto is recorded on the blockchain. Therefore, records are kept forever and accessible to everyone. It's not inconceivable that one day HMRC will have an AI system to go hunting for all UK unpaid tax..... They can go back 20 years legally. So just hope they don't announce it before then!
We would suggest to work with the financial advisor on this, we just try to help the audience with key info/tips to make their tax journey easier. Hope it helped you in any way :)
@@nikbeat888 I second that. I just recently added it to my ISA. Doubled value in just over a month, tax free. The other way to do it is if you have a limited company you can create a Small Self Administered Scheme (SASS) pension and you can invest in any crypto you want and the gains are tax free just like an ISA but with a higher yearly investment limit at £60K.
I've put in over £5000 in crypto since November 2022, but have only taken back out a very small particular profit of £150 from a caradano sale earlier today. Surely that cant be considered profit, as over all i still have £4785 of my own investment still sitting in crypto.? And isnt there a £3000 tax free profit anyway?
If your profit was over £3000 then you’d be looking at paying capital gains but since it’s only £150 you don’t. Until you continue to make profit up to and over the £3000 tax allowance in the same tax year. Hope that helps
Not sure what the £3000 crypto allowance means ... surely thats still the same cover under £12.570 earnings allowance? Unless you can add the £3000 onto the £12.570.. Otherwise it's all under £12.570 1:50 What if you earn £4000 from Crypto? Does that mean £1000 is not covered under the £12,570? and you have to declare it?
Thanks for your video. My crypto investments spread over last 3.5 years, total invested amount is around £50k. My portfolio total value now is £30k. I have sold one crypto for £3k this tax year. If I sell one crypto for $15k this tax year, do I have to pay tax for that in this tax year? For my investments, loss is greater than gain. If I understand correctly, Once i recover all my invested amount of £50k and whatever profits come beyond that, I can only pay tax for that amount, right?
Best to speak with an accountant. HMRC knows exactly who’s buying and selling Crypto because Binance and Coinbase are both registered with the tax authorities. My friend got caught out and he’s now having to pay interest and late payment fees
We encourage you to evaluate your personal situation with a crypto tax professional. Please have in mind that any sale is a taxable event, you should keep records of your trades (even losses). Hope that helps (this not tax/financial/legal advice).
That's considered a taxable event (spending crypto to buy a product). Have a look into it with a tax professional. Hope it helps. This not tax/financial/legal advice.
So I work and pay tax does that mean I still get the tax free alowance of 3k for CGT? Also if I was to gift to my partner that would mean we have 6k CGT free allowance between the 2 of us? Cheers
The tax free allowance is available for UK taxpayers. For details on your personal situation, please talk with a crypto tax professional (this not tax/financial/legal advice). Thanks for watching!
I’m not afraid of paying the tax. I’m even ready to pay these 10%. But! Over the past year, I’ve made so many transactions and conversions… What scares me is how to organize all this information and do everything correctly:(
Most importantly- income tax returns are voluntary. Read that again. There is no law that states you have to file your taxes. So why do we? Because we are led to believe that it is compulsory. 😉. Don’t take my word for it. DYOR. 😊
Yeah sure the returns are voluntary but tax evasion is very much a criminal offence. That's why we do our returns unless you want HMRC to come sniffing around.
Buy a high value asset with your gains in Dubai and wear it to UK, then sell that for cash. Easy and don't forget to enjoy Dubai when you get there....
Same but that was when you could make about £12-13k before any tax was due, now its much lower which annoys me. Will probably need an accountant now. Hmrc are crap but if making real money probs best to pay them a little and keep em quiet.
@@mdcmdc1good luck with an accountant who understands crypto i can even get a decent one to sort my LTD company's books... accountants are dumb crooks... you'd be better off doing a course on it
Thanks for the comment. What information is incorrect? We try to help our community with content in videos like these, but we are not providing any tax/financial/legal advice.
So basically, you can't avoid it. I'm sat on £250k profits and I'm not looking forward to the tax bill at all. I hate this country and can't wait to move away
similar issue here, i'm never selling not giving them theiving so and so's a single penny. if they ever introduce this ridiculous unrealised capital gains tax there is no way i will be paying that
@@martnava1661 Best bet is to just move country, I've been looking into Thailand for a while. Better country, relaxed laws, cheaper cost of living, better weather, better/nicer people, 0% capital gains, 0% income... just makes sense
so £3k allowance, £20K ISA ... the same if you gift "the same" to your significant other ... not that I was expecting a real solution to pay less tax ... but this is just a zero added value video - but then again, the title gets the views ...
There are few more strategies in the video - hope you can find value in some of them. Stay tuned for future videos, we always try to provide value to our audience :)
its hilarious... so hard to invest in crypto in UK... but by the age of 18, you can get thousand of pounds of Uni loan that you can probably never pay off and its garnering even more debt interest... funny that
Thanks for watching the video! Not familiar about the tax liability of the charities in the UK, we try to keep our focus on content about income/gains taxes for individuals. Please consult with a tax professional familiar with charities.
Some studies suggest that a very large percentage of the population in some countries don't report their crypto taxes. We are trying to help that, making it easy for people :)
Keeping crypto on an exchange is the same as a cold wallet in terms of taxes. It's only more beneficial because of security. Taxable events only occur when you either swap a token for another or close a trade for fiat. Cold wallets have no benefit on avoiding tax. If you make trades from one crypto to another AND THEN move to a cold wallet, the taxable event has already been made.
From simple maths is almost impossible to do it, 99% lost all in gambling crypto, there are a few people in the world who are in the plus in crypto you can count them on the fingers of one hand, most have huge costs, loans from banks for crypto and then everything is lost, almost always every year the tax office has to make a tax refund!
Not true really. The only way to make money in crypto is to buy and hold, bitcoin and possibly ethereum. Dont trade other crypto coins and dont day trade. Of the people who currently hold bitcoin 95% of them are in profit. Everyone who has held crypto for 5 years or more has never lost money. Ive been holding since mining in 2012. Been a wild ride watching btc go to 20 k then drop to 3 k then last cycle go to 69k. Now its near 100k dollars.
Check out our new Video about crypto taxes in the UK!
th-cam.com/video/hUJ4Qa1R8BM/w-d-xo.html
Charitable donations are deductible? So someone can just donate the whole value of the tax bill to charity? Is there any downside to this?
@@banksarenotyourfriendsyeah, you pay tax on the remainder
you know whats a joke that the fact the UK make so hard to buy it but then expect you to pay on your gains.
UK Crypto hub! They make it really hard to get into crypto to 'protect' the consumer, tax you if you somehow make any gains but you can gamble your house away on the horses and pay no tax on your winnings. You are right it's a joke.
💯💯
And when you cash out and send the money to your bank, the bank says you can no longer bank with them as they don't like receiving money from crypto sales, but HMRC still expect you to pay your taxes from a bank account you no longer hold.
But it's not hard to buy?
@@Wigalot It was easy to transfer money from your bank to the exchange and there was no limit on the amount. They have now limited the amount you can send to the exchange, so are controlling how you spend your money.
I took all the risk, so now its pumping,I aint giving the government a bean. End off.
We understand... But, we have to advice you to track everything and report your crypto - hope we can make the task easier with our content :)
Couldn’t agree more man. Been in since 2019. Resent the UK regulations so much especially more so now with the reduction of cap gains tax dropping from 12K to 3K in the last couple years. 🖕🏼🖕🏼
Same here brother same here .....they can swivel 💪🏻🙏🏻✅
Unfortunately, you've got no choice unless you leave the country.
I agree, in the criminal world this is called criminal racketeering. The royal family are criminals. I won't be paying Jack.
When ill see tax office to refund 24% from loses. I'll pay that 24% from winnings.
Exactly
If only...
Just like any other assets (property, art etc) you can offset losses against other realised capital gains. It is an asset, not an income, so you should not get a refund if the investment does not work out. Otherwise everybody would make investments as there would be no downside risk. By definition an investment has some element of risk.
It will be 28% by next year April.
Amen! 🙌🏻
countries like this will collapse, sooner or later, too much taxes in any form, will make wealthy people to leave the country, and only the poor people will stay.. that’s the society our politicians want for us
I hear you. If you ever consider moving, take a look at the most crypto friendly countries - th-cam.com/video/cJWPpNyJo9o/w-d-xo.html
That's how the UK is already. Labour winning saw over 20 thousand millionaires leave
For all thos BTC critic's ... they all wish they could have bought it at 1k, 10k, 20k, 30k, 40k, 50k, 60k... just imagine how much gold you could buy with the amount of profits. Gold is not the future. It's too heavy and too slow. Crypto is the future. And you can beleive or not believe. But we can all agree that you and I would have been much better off had we bought BTC any time in the past. Now all that said. I think BTC goes to a million but it goes to 20k first. Any massive pullback in it... is a trade not a hold. Same for gold and sliver. Rich don't hold tops ... they trade........ I have managed to grow a nest egg of around 3b"tc to a decent 26B'tc in the space of a few months. Amidst this, the insights of a knowledgeable guide like that of Aria Cookings Crypto can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
She's mostly on Telegrams, using the user name
@Ariacookings
Trading without professional guide is wrong, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency.
Or just move.
If you're looking to move, I encourage you to check our video about the top friendly crypto destinations: th-cam.com/video/cJWPpNyJo9o/w-d-xo.html
I would love too, but my partner is indifferent
@@danielwilliams3161 You have the opportunity for wife changing money.
We're looking to move to Panama. Low taxes, lovely weather delicious mangos 🥭 and papayas 😀
Need to spend $200k on property to get resident status. Worth it.
And hurry up before exit tax .
When Im finally in profit from this nightmare, I should be able to draw my initial back out without paying tax as I have a record of all the income I injected into Crypto...This money has already been taxed...After that Il happily buy somewhere to live in Portugal...They are much fairer over there
There's a long term tax benefit in Portugal (look into that) and the NHR program. This not tax/financial/legal advice.
They have exit tax
I don't know if you can do that though. Even if you invested £30k over the past 5 years, and you finally make profit and convert £35k worth of crypto back to GBP all at once. I think they still want to tax £32k of that by 18% right? I don't think they give a shit about the past? I can't find good information on UK long-term CGT
If the uploaded could clarify this, it'd be nice.
@@CoinTrackingIf you could help clarify if they still tax you in my example in my reply to Dave?
@@WipezNo, you only pay tax on the profit/loss. In your example only £5k is taxable
The level of taxation is already reducing my saved up wealth and it is going to be more, please what assets can i buy to grow back my wealth and protect myself from this intense taxation
@@EenvesTmawni fear of missing out is real ! who is the advisor guiding you please? I could really use a help at this point
We hear you.. have you looked into assets to hedge against inflation?
Is a Rolex tax deductable.
I need to tell the time.
I like it ;)
Thanks for the informative video, just a heads up if you can get your editor to bring down the volume levels of those swooshes or remove them.. I found it really hard to focus on what you were saying haha . Cheers
Hi! Thanks for watching and the suggestion - already passed it internally. Hope to see you in future videos ;)
You forgot to mention the rules with wash trading. If you take a loss but buy back the same asset within 30days, you can no longer count the loss to offset any gains! This is mega important!!
Hi! Thanks for the comment - you're right! We have a video coming up where we cover how to calculate gains based on those rules. Hope you take value from it!
what is tax deductible besides trading fees?
Cold wallets, laptops, phones, accounting costs?
Transaction fees are deductible for individuals while there could be more options for business for example - it will depend on your situation - please consult with a tax professional as we cannot provide tax advice. Hope that helps!
Tip number 6 is the real genius move
Thank you for watching!
One other thing! If you are a Ctypto investor then profit or losses are capital gains or losses, not income! If you are doing frequent trades and it is your sole source of income and you devote a lot of your time, its income. If only an investor your 12,570 income tax free amount is irrelevant!
Thanks for the comment!
What about if you earn less than £12,570? Will I have to start paying CGT on anything over £3k profit or can I use my income allowance?
@@BringDaFlex You cannot use your income tax allowance against Capital Gains!
This is all well and good…. BUT… all tax is voluntary…. Furthermore… if your tax is used to pay for wars or any human suffering then it’s illegal
Why do you say it's voluntary👀..?
I feel you could've zoomed-in and out and swiped left and right with the pan-control a lot more frequently to increase the number of viewers throwing-up on their monitors - true interactive viewing. Missed opportunity.
Thank you for the suggestion! Stay tuned for future videos ;)
If you're trading on an exchange especially a exchange outside the UK the HMRC has no way of tracking your trades surely so until you remove your money from the exchange to your account surely you don't pay tax on it no matter how many trades you close and start right??
Even if they weren't able to track your trades, you'd still have to report them under the law...
And if you've done ID verification on an exchange and given a UK address, expect the major exchanges, especially any that have tried going local in the UK (e.g. there was a Binance UK), to be fessing up transaction data to HMRC.
Thank you! Excellent presentation!😊
Thank you for watching!
Just subscribed to your channel. Love how you keep it straight to point and snappy. Just curious, how can you put your crypto into an ISA?
It’s easy to put it into a self invested personal pension. You can sell 3k per year before declairing for capital gains. Put you 3k into a Hargrovies landsdown sipp. The gov then gives you 25% tastes relief so you are up already! Then invest in miners, btc etf or whatever.
Thank you for watching. About your question, please consult with a tax professional as we cannot really give personal tax advice (we try to help with content to inform crypto investors).
You can’t. You have to buy ETFs BTC funds or buy a company share like Microstrategy in your ISA (they own over 330,000 BTC and constantly buying more).
So if I just leave my crypto and don't exchange for another crypto, or don't cash any out, then there is no reason to declare anything?
What about other transactions that earn income? It's not only gains you have to report. Please check our UK crypto tax guide for more info: cointracking.info/crypto-taxes-uk/
Yes but you will lose 90% of your gains again holding through the next bear market
Very good video. Nicely explained. Also think about using a limited companies if you are a high rate taxpayer.🙏
Thank you very much for watching :)
Can you just forward gains to spouse crypto and her gains back to yours over and over without paying tax?
That's creative... Please consult with a tax professional before doing such a thing - hope that helps!
Hello, I am little bit confused, start invest in Crypto since 2021,on the top of bull run, logic got a lot of loss, next 3 years still invest, portfolio some time it's on profit, some time loses, never fixed, just hold, never report to HMRC (didn't know), now hope in 2025 will get some profit, how will report, when will sell my usdt to gbp? I did some illegally when did not report last 3 years, I just invested, converted from one token to another one, but never get out in GBP(UK blocked all exchanges)
Hi there! I'm not sure I entirely follow your situation. However, please know that holding crypto without selling it not a taxable event. However, crypto-to-crypto trading is also a taxable event (as selling crypto for FIAT like GBP). Our suggestion is for you to track all of your trades with our software and work with a crypto tax professional to make sure everything is okay when reporting to the HMRC. We also have a video coming up explaining how to report to the HMRC when you haven't done so under the right deadlines. In the meantime, please reach out to a CPA to solve your specific situation (we cannot give catered tax advice).
Or just don't tell them. You're not obliged to engage into a contract.
Simple
Unfortunately it's not that simple as the exchanges give data to HMRC.
@djtaylormade1195 They probably do. And then HMRC will send you a letter or an email asking you to engage into a contract with them by filling out a self assessment form.
@@BringDaFlexmy understanding is the exchanges only share data on people buying or trading more than £5k per tax year.
@@BringDaFlex centralized exchanges yes but ......
Just to clarify ...i trade full time and a large amount of my income is from usdt margined perpetual contracts . As i am not swapping crypto as its a derivitive product i am using ....i know i am not liable to disposal taxes.
I have been recorded my tax liability based on a usdt to fiat cash out using CGT as still hmrc doesnt seem to agree it should be taxed under income tax even though i am able to demonstrate monthly i am making regular trades and regular income.
My question is as i keep seeing it referenced online is that crypto derivitives are classed as gambling in the uk therefor are non taxable (sounds ton good to be true )
What is the position on this as i dont want to continue filing AND paying tax i am not really liable for.
Thanks in advance
Don't ask him, he doesn't seem to be aware awful such nuances. Get a proper tax adviser
ive heard this before and im very curious if this is true. if you find out, reply back
@@OA-Wanted I will do especially since our CGT allowance is evaporating into nothing each year that goes by...en of the the day I didn't expect to get my answer on here after watching rest of this video.
I think HMRC doesn't know a way of taxing derviritive product in the UK hence the bs " retsil trader ban ' for derivatives
I'll pay a proper accountant and ill reply to this message let you know what they say ok
Please consult with a tax advisor especially since it seem trading is your full-time activity.
What qualifies for capital gains over income tax. I was given crypto for some help on a project. Does that mean I pay income tax on it, alongside whichever tax bracket I am in?
Hi! It all depends on the type of the transaction. For example, trading any crypto will lead to capital gains while earning any type of crypto will lead to income taxes as a benchmark rule. If you're paid compensation for your work, it would likely fall under income taxes, but please consult with a tax advisor as this is highly personal and we cannot provide tax advice. Hope that helps!
Thank you. New sub here 🏄🏻♀
What about expenses such as wallets to store your crypto... can those be used similarly to losses to help reduce the tax bill?
I put everything in costs. Bought so much gpus for crypto mining, computerst too
Like transaction fees?
Well explained video - thank you
Thank you very much for watching :)
Just DCA into bitcoin , excluding bear market.
Never sell . You can borrow against it on platforms like Ledn . Just roll it over . Borrowed money is not taxable . Number always go up .
Those are some good strategies, thank you for the suggestions😎
If they want to tax it you should be able to pay your tax bill with it
Some cantons in Switzerland allow it. Do you think it will happen in the UK?
What if you sell at a slight profit and then decide to reinvest in the same or different crypto currency without removing from a wallet or an exchange, Is this fine?
A conversion of crypto is a taxable event (disposal) in the UK. Please work with a professional to find the best strategy for you as we cannot provide tax advice.
What if you have no records at all? Can you not just pay tax on your whole gain?
Of course. If you spent 40 k and take out 100k your profit is 60. You would pay tax on that. But if you spend 130 and take out 130 you still supposed to.pay tax on individual crypto. So if you spent 10 on doge and cash out at 50 it's still 40.profit. Even though overall it might be negative. It's a nice problem.
Hi, you have to keep records of your trades somehow (look into working with a crypto tax professional). If you sales, those are taxable events (this it not tax/financial/legal advice).
You should be careful. As all crypto is on the blockchain for infinity it could be possible in the future for HMRC to use AI to go through all transactions to find unpaid tax. I think we are a long way off from that but they can go back 20 years I believe. If it's not a sizeable amount then I wouldn't worry as I have friends who were early adopters in this situation too.
What if you just convert to privacy coin like XMR on an exchange and then move funds to private wallet. How will they be able to track any taxable events after that?
Hi! Thanks for the question. Please be aware that converting into a "privacy" coin is still a crypto transaction, which is taxable in the UK. You can argue that authorities may not be able to track those trades, but that doesn't change the tax obligations/requirements. Hope that helps!
Don't forget the £1000 miscellaneous income allowance.
True! Thanks for the comment!
Is this within Personal Income Allowance or on top of that?
I've made the decision to use Solana. Would you mind sharing your thoughts on this choice with me?
Can you clarify your question please?
Does the losses include losses on stocks aswell?
Do ou mean deducting stock losses from crypto gains?
Really useful content but way too much zooming and whooshing....very distracting!
Thank you for the suggestion and for watching :)
Good video, could you kindly cover what funds are available within an ISA
Thank you very much for watching! We'll take note of your suggestion for future videos :)
Is it the same if you leverage trade ?
Hi! Could you please clarify? If you sell a leveraged position, it's still a disposal subject to capital gains taxes. However, we cannot provide tax advice - please consult with a tax professional about your personal situation.
@ yeah selling leveraged positions
hi there, if i send crypto worth 100k to my spouse, once he sells , there won't be any tax for him?
That’s exactly what I want to know too
Good question but Spouses can be more dangerous than hmrc careful with that 😅😅😅
Please consult with a tax advisor on this as it's highly personal (we cannot offer that kind of tax advice).
No, unfortunately! YOU don't pay tax gifting it to him but he will take on the assets at their original value i.e. what you first paid for them. If he sells and makes a gain - tax for him!
Great video , I plan to give
My wife some and hope she can use it as income allowance as currently she doesn’t work but chat gtp seems to suggest if she turned it into fiat under one transaction it would fall under CGT ?
Converting crypto to FIAT (like GBP) is a taxable event - please consult with a professional before making a decision. Hope that helps!
Just hold! Damn you’re a smart boy. Never would have thought.
HODL for life :)
I off ramped some crypto now the tax man is after me but the problem is I don’t have any records to prove the original purchases. What do I do???
Let's try to help! In what exchanges/platforms did you trade crypto? You have to start there and try to export your transactions with the help of crypto tax software. This will help determine the right gains/income you had throughout the years and with the help of a tax professional take care of the situation. Please let us knows the exchanges you used so we can provide further support.
@ to be honest these are holdings over the span of the last 7 years. I used dexes to buy them but eventually
I just decided to cash out using usdt and a year later I got a letter from the tax man unsure how to proceed
@ to be honest these are holdings over the span of the last 7 years. I used dexes to buy them but eventually
I just decided to cash out using usdt and a year later I got a letter from the tax man unsure how to proceed
@ to be honest these are holdings over the span of the last 7 years. I used dexes to buy them but eventually
I just decided to cash out using usdt and a year later I got a letter from the tax man unsure how to proceed
Whats the best affordable tool in the uk to do your crypto taxes then?
CoinTracking :)
Love to see a video likethis about ireland
Thank you for the suggestion :)
Ah yes, i dont want to lose money in tax so ill just give it all away to charity instead! Why didnt i think of that
Hope you found the other strategies more helpful for your situation :)
That’s what billionaires do. The difference is that they set up their own profitable charity then donate their profits to their own charity and pay themselves a handsome salary as the CEO.
Plus they accept donations from the public as well, and only a fraction of that goes to the cause. The rest goes to paying all the other employees within the charity.
Usually the charity is focused on helping victims instead of fixing the problem. That’s what allows the charities to be continually relevant and be a never ending money generator.
There’s no point in preventing cancer once and for all when you can spend decades allegedly looking for a cure and making billions in donations.
Why stop cruelty to donkeys when you can get money to look after the abused donkeys. Every profitable charity you see on tv was set up by rich people to avoid paying taxes.
I know lots of new crypto millionaires will do this too. The difference will be that many of them will be setting up charities for the right reasons, to actually make a difference and do some good in the world.
That is my plan anyway and I know I won’t be the only one.
@@sswwiinnccee Spot on! That's why I never give to any charity organisation, I'm happy to give cash directly to a homeless person though where they will directly benefit from it in some way
Hate the fact I can’t take my crypto gains and put it into my stocks ISA invested into a tech fund (like a pure-tech fund or the S&P).
We hear you :(
So what about paying of a loan?
There are exchanges that allow you to borrow (either loan or credit card) with your Crypto as collateral, and you can pay the loan in Crypto.
Is that a non-taxable event?
We cannot really give that type of personal advice - please reach out to a crypto tax professional to evaluate your situation ;)
Fyi for non-UK domiciles: normally (but now only for the first 4 years of UK tax residency), a non-domicile does not have to pay tax on offshore income that stays offshore. This does NOT apply to crypto, which they treat as onshore (because it's in the cloud and blockchains have no country or something). Illogical when its held on an overseas exchange, but that's the rule. Massive disincentive against crypto bros becoming UK resident. Only the residency rules themselves are more offensively stupid than this.
Thank your for watching an adding that info!
I read that Coinbase will report to HMRC any accounts that have received £5000 and more in crypto, and I'm assuming pretty much all exchanges must do the same...if ...a friend of mine let's say ...has all his crypto in a private wallet and sends 3-4k to different exchanges like coinbase,uphold ,binance,technically none of these exchanges would report to HMRC isn't it? Asking for that friend of mine 🤪
No they won't. They can't even get back to their customers 😂😂
Good idea tho. Thanks 😂
Always assume that tax authorities have the resources to find about unreported crypto..
Crypto is recorded on the blockchain. Therefore, records are kept forever and accessible to everyone. It's not inconceivable that one day HMRC will have an AI system to go hunting for all UK unpaid tax..... They can go back 20 years legally. So just hope they don't announce it before then!
@@aries6776 yh and when that one day comes. Most people who are into crypto won't b living in this shytee country
Does anyone know when did Capital Gains Tax on crypto come into effect?
For a few years now..
@@CoinTracking Thanks, this much I know but I'm trying to establish when exactly did it happen
so what classed as long term investment and if i sell that long term investment then no pay on CGT?
If you sell, you have a taxable event (please consult with a tax advisor as this is not advice).
@ so then what you said about long term makes no sense
Please give an example of a crypto related fund you can buy in UK through the ISA
MSTR Microstrategy somewhat a BTC exposure
We would suggest to work with the financial advisor on this, we just try to help the audience with key info/tips to make their tax journey easier. Hope it helped you in any way :)
coinbase, mara...
@@nikbeat888 I second that. I just recently added it to my ISA. Doubled value in just over a month, tax free. The other way to do it is if you have a limited company you can create a Small Self Administered Scheme (SASS) pension and you can invest in any crypto you want and the gains are tax free just like an ISA but with a higher yearly investment limit at £60K.
I've put in over £5000 in crypto since November 2022, but have only taken back out a very small particular profit of £150 from a caradano sale earlier today. Surely that cant be considered profit, as over all i still have £4785 of my own investment still sitting in crypto.? And isnt there a £3000 tax free profit anyway?
If your profit was over £3000 then you’d be looking at paying capital gains but since it’s only £150 you don’t. Until you continue to make profit up to and over the £3000 tax allowance in the same tax year. Hope that helps
There's a £3K capital gains tax free allowance for 24/25, but keep track of all of your trades - you'll need at some point. Hope that helps!
@@CoinTracking It does. That was my thoughts exactly, but thanks for reply and confirmation.
You have to pay if you swap btc for eth?
Crypto trades are taxable events, you have to pay taxes on those (not financial/tax/legal advice).
Not sure what the £3000 crypto allowance means ... surely thats still the same cover under £12.570 earnings allowance? Unless you can add the £3000 onto the £12.570.. Otherwise it's all under £12.570 1:50 What if you earn £4000 from Crypto? Does that mean £1000 is not covered under the £12,570? and you have to declare it?
One tax-free allowance is for income (12.57K), the other for capital gains (3K).
Only 3k wow thats shite
Handsome tax advice. Thanks!
there is no etf in the uk that allows crypto
An indirect way to get exposure is to have stocks highly correlated to crypto (this it not financial/investment advice). Hope that helps!
What crypto isa is there?
Could you please clarify your questions?
@@CoinTracking I reckon what @CKINVESTOR means, what ISA, Individual Savings Account, are there that have Crypto as an asset?
Thanks for your video. My crypto investments spread over last 3.5 years, total invested amount is around £50k. My portfolio total value now is £30k. I have sold one crypto for £3k this tax year. If I sell one crypto for $15k this tax year, do I have to pay tax for that in this tax year? For my investments, loss is greater than gain. If I understand correctly, Once i recover all my invested amount of £50k and whatever profits come beyond that, I can only pay tax for that amount, right?
Best to speak with an accountant. HMRC knows exactly who’s buying and selling Crypto because Binance and Coinbase are both registered with the tax authorities. My friend got caught out and he’s now having to pay interest and late payment fees
We encourage you to evaluate your personal situation with a crypto tax professional. Please have in mind that any sale is a taxable event, you should keep records of your trades (even losses). Hope that helps (this not tax/financial/legal advice).
Not that this helps answer your question but what did you buy that your portfolio could be 40% down?
@@carlyndolphin Ok, Thank you.
@@CoinTracking Thank you.
If you dont cash out do you still have to pay
Just holding crypto without selling?
Yes also how does HMRC learn if you have it in first place please?
What about applying for a coinbase debit card and spending on that?
Tax evasion if you don't report the gains!
That's considered a taxable event (spending crypto to buy a product). Have a look into it with a tax professional. Hope it helps. This not tax/financial/legal advice.
How do you prove a transfer to your spouse
You should have the record of the transfer from the exchange. Hope that helps!
So I work and pay tax does that mean I still get the tax free alowance of 3k for CGT? Also if I was to gift to my partner that would mean we have 6k CGT free allowance between the 2 of us? Cheers
The tax free allowance is available for UK taxpayers. For details on your personal situation, please talk with a crypto tax professional (this not tax/financial/legal advice). Thanks for watching!
I’m not afraid of paying the tax. I’m even ready to pay these 10%. But! Over the past year, I’ve made so many transactions and conversions… What scares me is how to organize all this information and do everything correctly:(
That's what we built CoinTracking for :)
Just swap it for a stagle coin on a decentralised exchange and keep all your money
Trading on DEXs doesn't mean you're not incurring in a taxable event.. please be careful
Most importantly- income tax returns are voluntary. Read that again. There is no law that states you have to file your taxes. So why do we? Because we are led to believe that it is compulsory. 😉. Don’t take my word for it. DYOR. 😊
Thanks for the comment!
Yeah sure the returns are voluntary but tax evasion is very much a criminal offence. That's why we do our returns unless you want HMRC to come sniffing around.
I paid tax from what I get from work. And now they want me to pay again taxes... bullshit
We hear you :(
how about just leaving it in Phantom Wallet or Metamask?
Don't forget that trades using decentralized exchanges are still taxable events. Hiding/not reporting crypto gains/income is never a legal option..
What if lets say you get your laptop and hardwallet stolen?
Take a look at our UK tax guide for clarification: cointracking.info/crypto-taxes-uk/
I paid tax on the money I used to buy crypto and took a huge risk, that they want to benefit from! Could always take it to Dubai!
Encourage you to take a look at our video with the best locations for crypto taxes (includes Dubai👀)
You missed out a fundamental solution friend, you can avoid tax on any crypto gains by investing via a sass personal pension
Sorry ssas
Interesting. Thanks for the comment ;)
When you say pass to your wife,do you mean 7 years b4 your death or at the time,can anyone elaborate and can it be to ones husband ?
Do you mean gifting crypto to your wife?
Buy a high value asset with your gains in Dubai and wear it to UK, then sell that for cash. Easy and don't forget to enjoy Dubai when you get there....
🤔
I've been cashing out over last 4 years and have learnt how crap hmrc are tracking it 😅
Same but that was when you could make about £12-13k before any tax was due, now its much lower which annoys me. Will probably need an accountant now. Hmrc are crap but if making real money probs best to pay them a little and keep em quiet.
@@mdcmdc1good luck with an accountant who understands crypto i can even get a decent one to sort my LTD company's books... accountants are dumb crooks... you'd be better off doing a course on it
Well, our advice would be to track all of your crypto activity!
Uk should allow bitcoin etfs .. USA done it
True, maybe that will change with rising adoption :)
Are you a financial advisor? Some of what you said in this video is incorrect. Very bad advice!
Thanks for the comment. What information is incorrect? We try to help our community with content in videos like these, but we are not providing any tax/financial/legal advice.
@@CoinTracking The 20k allowance was not mentioned
I’m half way through the video and you still haven’t said anything of value. I’m out.
Hi! Give it a full watch, I'm sure we can help ;)
I was watching then read this lol I'm out too
Wow, the second half of the video was very helpful. Saved so much on my tax bill @CoinTracking
😂
@@stefanpuxon Fantastic second half of the video by the way. Well worth the time. Saved a fortune on tax 😁
Airdrops are taxable? damnn
:(
So basically, you can't avoid it. I'm sat on £250k profits and I'm not looking forward to the tax bill at all. I hate this country and can't wait to move away
Is there a strategy from the video that could help reduce your gains? Hope it can help in some way!
similar issue here, i'm never selling not giving them theiving so and so's a single penny. if they ever introduce this ridiculous unrealised capital gains tax there is no way i will be paying that
@@martnava1661 Best bet is to just move country, I've been looking into Thailand for a while. Better country, relaxed laws, cheaper cost of living, better weather, better/nicer people, 0% capital gains, 0% income... just makes sense
so £3k allowance, £20K ISA ... the same if you gift "the same" to your significant other ... not that I was expecting a real solution to pay less tax ... but this is just a zero added value video - but then again, the title gets the views ...
There are few more strategies in the video - hope you can find value in some of them. Stay tuned for future videos, we always try to provide value to our audience :)
Move to Romania! 🇷🇴📈🚀🌛
Encourage you to check our video about the top friendly crypto locations😎
I don't mind pay the tax of I'm getting few millions
A few? They will want at least 1 mill then bro
Up only📈
Live on the isle of man, 6 months and you're tax free, just do it for the bull run
Encourage you to take a look at our video with the top crypto locations for taxes ;)
The best option is still to leave the country
Well, if you're considering that, I encourage you to check our video with the best countries for crypto taxes!
its hilarious... so hard to invest in crypto in UK... but by the age of 18, you can get thousand of pounds of Uni loan that you can probably never pay off and its garnering even more debt interest... funny that
We hear you :(
It's not hard!!
Only valuable guide if you're new to dealing with taxation.
Otherwise, nothing new here.
We hope you can find value in future videos - we have a lot prepared for the UK!
You cant avoid taxes on large profits
There are always legal ways to lower them though - hope you found the video helpful :)
If you gift your crypto to a charity, does the charity have to pay tax once they put it into fiat? If so, how much?
Thanks for watching the video! Not familiar about the tax liability of the charities in the UK, we try to keep our focus on content about income/gains taxes for individuals. Please consult with a tax professional familiar with charities.
@@CoinTracking Ok, thanks anyway.
I would guess more than 60% minimum won't even declare it.
Some studies suggest that a very large percentage of the population in some countries don't report their crypto taxes. We are trying to help that, making it easy for people :)
😂😂😂😂😂 i aint paying no crypto tax 😂😂😂😂😂
And when the HMRC coming knocking because exchanges report to them you'll start crying 😂😂😂
@ACIDGameReviews the wonders of trading with fake ID and dodgy bank accounts my friend 👍👍👍
We do not approve this message...
@CoinTracking 🤷♂️🤷♂️🤷♂️
i profit from crypto less than £3000, do i need to do anything?
No. Only profits above £3000 are eligible for tax deductions.
Track all of your trades to prove your profits/losses. We cannot really provide personal tax advice.
Government is not going to help when you lose money. Crypto is like gambling, that simple
That’s with anything.. update your world view
Well, there are few strategies to lower your gains, that can help. Hope you can find value in the video ;)
Cold wallet
Keeping crypto on an exchange is the same as a cold wallet in terms of taxes. It's only more beneficial because of security. Taxable events only occur when you either swap a token for another or close a trade for fiat. Cold wallets have no benefit on avoiding tax. If you make trades from one crypto to another AND THEN move to a cold wallet, the taxable event has already been made.
To secure your crypto? Sure.
From simple maths is almost impossible to do it, 99% lost all in gambling crypto, there are a few people in the world who are in the plus in crypto you can count them on the fingers of one hand, most have huge costs, loans from banks for crypto and then everything is lost, almost always every year the tax office has to make a tax refund!
It's certainly hard to trade profitably and the tax man always wants a cut..
This is a lie, I've made 6 figures because I invested in projects that I researched in depth before buying
What are you on about? You clearly know absolute nothing.
Not true really. The only way to make money in crypto is to buy and hold, bitcoin and possibly ethereum. Dont trade other crypto coins and dont day trade. Of the people who currently hold bitcoin 95% of them are in profit. Everyone who has held crypto for 5 years or more has never lost money. Ive been holding since mining in 2012. Been a wild ride watching btc go to 20 k then drop to 3 k then last cycle go to 69k. Now its near 100k dollars.
@@Tonysmithmusic how did you sort out taxes every year?
Tax free allowance?! This isn’t exactly high brow gangster advice?
Hope you can take value from some strategy in the video ;)
King Charles is also a tax payer. Precisely, let's not put them in Kier Starmer's pocket. ;)
Thanks for watching ;)
O shit you saved us 40£
Hope more than that ;)