if you try to invest: bank blocks deposits, warns of risk and does everything they can to stop you. If you make money: give us 20% if you lose money: we told you not to do it
They were talking of bringing capital gains rate into line with income tax so we got off lightly and capital gains in this country is still quite low.(it was far higher not that long ago).
@AIJimmybad then we have to pay 20% on everything we buy with the profits we have left... I do wonder where all our money disappears to. Roads are falling apart, nhs also. Gangs of immigrants on the streets. The rich don't care, the system is set up to protect them. Lower middle and working class get the shitty end of the stick once again.
I have no plans of paying tax on crypto anytime soon. This time, the government will not win. There are ways around this, but I recommend caution and research on the matter.
It's mental. They offer no service and try to stop you being able to buy it but want tax on your hard work. Also how can you tax turning ETH in lnto SOL?
They really are some grubby corrupt scumbags. Moving the goalposts inflating away our currency lying about inflation. If even half the population understood how abusive fiscal policy has become there would be riots in the streets.
@@chriss1384If the conversion is not done through fiat currency (GBP), I believe you have to record yourself what the price of both ETH and SOL was at the time of the conversion. This is on you to do. Most exchanges (Coinbase/Revolut) will do the conversion through your designated fiat currency, so they can provide this information and give you the precise amount of the conversion either side. But the smaller (unregulated?) exchanges might not do this which is where it becomes potentially problematic for you.
@chriss1384 It's a taxable event. The government want to take the shirt off our back and spend it on illegal wars and to line their pockets. That's why its best to leave so they cant get their grubby hands on it!
Chasing everyone for tax now! All so we can afford to pay the £8 million per day to house economic migrants(chancers)in hotels. What a joke the UK has become.
I don't see why we should be using taxes to house these people , I don't want them here I didn't vote for our taxes to be used to house and feed them so why should we pay taxes
We all just paid over £100 Million for the Kings coronation, we pay daily millions for a police force that don’t do their job and then go eat kebabs every other evening with our tax money and the same for councils we pay for their salaries and guaranteed pensions so they can sit chat and drink coffee and maybe send an email here and there and get nothing done anyway. You’re right! What a joke
I will do the same , better to go in prison then to pay taxes on my crypto , let’s say on 1 million crypto profit I have i have to pay the Mafia government 400 000 £ no way
That sucks. I moved to the UK from Germany because salaries are much higher here and income taxes much lower than in Germany. But the crypto tax laws absolutely suck in the UK. In Germany that's much easier. On the other hand the German government doesn't skip any opportunity to steal money from you via income tax, capital gains tax on stocks and ETFs, etc. Maybe I should just move to Portugal. Better weather anyway
I think Portugal changed their regulations recently, and not so favourable anymore. Malta may be a better choice. If you dont mind livng on a hot rock.
Same as the inheritance tax BS. You get taxed again! I really wish people would push back harder on these unfair double taxations. I am still relatively small time but wealthy enough and if I am furious! I can only imagine what those with huge portfolio's are thinking. Money will be exiting this country at a historical rate and then what is the government going to do? The UK will decline and become practically a third world country within 10 to 20 years if the government do not smarten up.
Taxing stablecoins is madness. I moved to Austria. Here you can sell crypto for stablecoins and that is NOT a tax event. If they are going to do that, the only way it would work is if it is an added tax at the time of selling/swapping and the responsibiity of the exchange. It would still suck, but that is only way to avoid a huge mess. I thought the UK wanted to be a progressive "crypto hub"? Everyone in the industry will leave.
dont for get to give up your UK citizenship big boy, pop into british embassy a few months after you leave, and say you no longer need it, otherwise if HMRC finds out you cashed out massive gains in UAE whilst you were UK tax resident, be rest assured Interpol will be coming for your ass, HMRC loves tax evasion, and if the fruit is low hanging the will scoop the FRUIT - whop whoop whoop. These good dam moonbois, aka zi crypto investor, high IQ savages, savvy f.. financiers... blyat
@benjaminollis7621 it depends which bank. it doesn't cost millions or even thousands to open a bank in most other countries. its how most our politicians get away with paying no tax.
@benjaminollis7621 It all depends which ones. Bank of Thailand, switz bank, Dubai bank, Japan bank and many more over 100 infact. They each have different requirements to set one up. Some are easier than others it all depends on your personal circumstances. The reason i mentioned those banks is because their pro crypto and signed up for digital currency. Some countries are anti crypto. A bit of self research will show you which one is which. If you made enough on crypto no bank will be a problem. As it goes straight from crypto currency into which ever foriegn bank your with. Avoiding any taxes from UK. Of course if your wanting to withdraw/send over money from bank to bank there can be charges applied. One of your goals should be to try gain as many passports as possible. For this it makes opening banks so easy. It also protects you from future lockdowns where one country could be banned from travel yet you can just whip another passport with a country what hasn't be banned from travel. It also doesn't make you beholden to one government but multiple. Say if one country wanted to put you in jail, you could be protected by another country. Its what all the rich and powerful do. For me personally im working on to gain enough to leave UK for good. Its a failed society. With insain tax rates prices going up crime going up and shit weather. 😂
Crypto is basically gambling. I dont understand how they can tax it! Let people have their wealth ffs. We dont get bailed out if we lose our money like with terra luna or ftx
Hey James, great stuff. I began buying Bitcoin in 2014 and I have made enormous gains since. I am a Hodler too, but I did spend some on a BMW 630i Sports Coupe a couple of years ago. I bought the BMW using Bitcoin, and paid an amount equal to thousands in fiat money. However, because I used Bitcoin bought in 2014 the relative cost of the BMW to me, in fiat, was £26.80p lol. I declared all of my Bitcoin, and some alt coin dealing, to HMRC via self assessment in tax year 2022/23 using an accountant. The self assessment has been submitted so I am now completely up to date with everything. It's a good feeling to be honest.
The UK government has never learned. This is the reason why the USA fought for their independence. We are being taxed a lot, and yet the wives of our politicians are getting away with tax evasions.
Well it looks like the goverment is trying to get as much money as possable from us, even after we have already payed tax on it. But they need the money to pay for the new uk residents moving in.
Thank you so much for covering this James. Seems like the prohibitive regulations for UK crypto investors are meant as a deterrent from engaging with it. I would be concerned as a government too if my currency was backed by nothing, heavily inflated, bought me 86% less than 50 years ago when there are now countless alternatives (albeit some better than others).
This is deeply disturbing. The govt is into everything we do. I'm almost 60 and looking at spending time to learn how to use a dex and cold wallet(s). I don't mind paying SOME tax, but ffs.....£3k allowance...really? Plus, if you're into crypto, there's no help if you lose 73% of your investment for instance. Dunno about I'm George, we're all George. We're all fooked!!
In Germany, cryptocurrencies count as “other economic goods” and the sale thereof as a “private disposal transaction.” Profits from cryptocurrencies are taxed at the personal income tax rate. Hold your crypto assets for one year and you won't pay tax.
Or just get Koinly to do the whole thing for you. Can't fault it all.. Tracks all your central exchanges trades and defi swaps etc with historical price data for free.. You only pay when you want it to generate the actual tax form.. But even then you could simply write it yourself from the free account.. Litteraly logs everything for you
that's only easy when you are new to crypto and/or with few transactions. I have been in crypto since 2018 using Multiple exchanges, DEX's, Non custodial wallets, NFT's, 14K transactions and to top it all off some of them nft's/tokens are no longer active with any data to find. Koinly gives me hundreds of errors after linking all my wallets. WTF! am I supposed to do? Government turn up late to the party and now expect us to just pay like its easy, its a nightmare.
Can I ask if you do use your spouse’s allowance in any tax year does the trade have to be two separate ones to take advantage of it or can you use her allowance if there’s just one taxable trade on your own exchange?
Don’t think you are alone in this. I think you need to soft delete all the errors to make it balance @@staggamatron9245 I have the same but haven’t been trading as long. I think as long as it looks reasonable. I use Coinstats too and got to the stage that both agree as far as portfolio values go. Coinstats don’t do uk tax reports tho and the Koinly videos are pretty good .. time consuming though
Honestly I will only pay tax when I cash out can’t be tracking all this and paying taxes makes it not worth while. Crypto is gambling on the money I use from work that I paid tax on.
I've been in crypto investing since March 2021. I never kept record of transactions and some of the exchanges/apps that I used went bankrupt , so how the hell am I going to remember what I bought or sell in what price?!!!
The uk government are completely clueless about this as they are with everything else. As far as I'm aware. I can go through my bank accounts to see what I've invested over the last few years and I'll pay 20 percent on any profit after my original investment. That's what I'm doing. They don't have the resources to go through everyone's transactions. Ludicrous!
Hey fella, would I be able to use your comment in my crypto tax article? I would just screenshot it and display it as it is and I can do it with or without your name displayed having your name drive traffic to your channel though! Cheers
Great Video , i personally hold all my crypto as long term investments , holding past 12 months before selling, this means you only pay tax on 50% of the Gains
Will be interesting to see how HMRC cope with this going forward. I claimed a loss for 2022-23 which can be carried forward to offset against the coming bull run’s gains .. hopefully 😂 with an annual exemption of only £3k I’ll need all the offsets available. Koinly will prepare a UK tax report .. there may be others but I don’t know of them. Really though, without using third party software I imagine it’s impossible for traders to keep track with thousands of transaction each year, yet still not accepted as trading by HMRC. Would be simpler to treat crypto as one asset.
If I earn significant amount of money worth mentioning to tax man, I'll hire someone to write every single transaction by hand. All the wallet addresses, txn hash's etc 😂. Also I am going to use Messier M87 eth mixer to hide my transactions. Screw the tax man
Won't work like that, do more research you will incur penalty's when you cash out to fiat, you can't escape it...unless the obvious ! Move out the country for 5 tax years...but pfff .. who is going to do that ! Some will, not many @@mouzes9097
This is an excellent channel for the serious investor, it's both comprehensive and simple to understand. I always thought that capital gains tax was a flat rate of 20%. It's great news for people like myself paying only 10%! Thanks for the info, it was both informative and interesting.
So Last year I made £100k the government will take £20k for free. This year I'm losing £100k, will the Gov give me £20k? No, I guess, so on that note F&#* you and catch me if you can 😅
Thank you for the info:))) Just a question please: when do we have to pay tax? What if we gain profit but left all money in exchange? Do we need to pay tax when we sending money to our bank account?
I don't see the point in it. Why can't you simply let the taxman know your profit and simply keep records for the FIAT money going into crypto and the FIAT money coming out when you sell. Typically, people put FIAT into Coinbase and convert it all to Crypto. They then sell to FIAT when they are happy with their profits and cash back to their bank account. Surely they do not need to know that you sold crypto for crypto. What matters are the transactions out of FIAT and back into FIAT.
@@Marsh1983 I don't think switching to stable coins should be seen as realising profit. Realising profit is when you swop for FIAT money. If you swop to stable coins to then get back in during the next bull market you will sill need to realise profits at some point in the future by getting that money back to FIAT and you r bank account. If you go back to FIAT, like me, I don't see why you can't just tell the taxman that you profited by X amount and leave it at that. Why would they bother you for not listing every transaction if you paid the correct tax amount, it's pointless for them to do so.
If its your only income its 20% tax over the £12,500 soon to go up. If you already have a job then it's cgt. Most are still down from 2021 so most accounts were negative going in to 2024
Crypto is outside of the traditional financial system so also outside of the governments control, what they are doing is called government overreach. How will they proove who owns which address or funds?
Can buy precious metals online using crypto. Then offload at a local jewelry store. Or find a platform offering crypro visa cards and spend crypto directly.
Its about time we stop agreeing to be bent over. How can HMRC say that crypto is "not a recognised currency" yet still demand income tax on it? They treat it as a Currency AND a property, depending on what suits them.
The current tax regulations surrounding crypto assets is not sustainable. As BTC and others become more widespread as a medium of exchange the harder it will be for UK and other countries to enforce. Don’t like their regulations? Find a country without stifling tax conditions and spend there. All you need is a decentralised wallet, and soon enough it won’t be necessary to convert back to fiat.
I'm a miner who has been pre-mining a coin for over a year. At present there is no off ramp unless I swap it for Bitcoin. This now means I have to pay tax on the coin twice, just to be able to get it into my bank account. How is that fair? Why should you have to pay tax on conversion because you are not making any money. The amount you receive on a swap is equal to the amount you put in to swap. This is screwing us all over in order to fund tax cuts before the election.
Thanks for the video. Do you have an idea if we need to declare as income unrealised staking rewards ? Is there any limit? Considering the staking rewards are like 100-200£ a year
What’s the deal with inheritance tax? So my father leaves me 100k which he earned fair and square paying all necessary taxes throughout his life. I get this inheritance and have to pay tax on it AGAIN? Unless I have missed something it just doesn’t seem right?
@@user-cb8ip8fq8e stop being a simp defending people that dont care about you. We need it more in our pockets to get on with our life then the government who are very skilled at wasting it anyway. it's tax, on top of tax,on top of tax, which is unacceptable.
Great video but Airdrops are the majority of gains in the space. Interestingly HMRC said that if you sell at time of claim then there's no tax owed as you sold at market value but if you held and airdropped token appreciated then you would owe tax. Seems very unclear on their side but seen several statements where this was the case and if you sold after that token went down that's technically a loss.
They froze my account too I recently made a new one to off ramp as bitget has suspended GBP withdrawals only to find coinbase has done the same. The trading pairs with GBP on coinbase are for 'view-only'.
I use FCFpay visa card to spend my crypto in the UK. Currently rebranding to Zyptopay. Saves sending to exchange, selling and off ramping and getting phone calls from my bank
Hi James, Could you please help with a couple of questions below? If you periodically get crypto staking rewards in the form of additional crypto that is locked (3day unlock period) when is it classed as income. Also, how do you determine the actual income? When you periodically receive crypto rewards throughout the year and the value fluctuates?
@ James : Thanks for the very insightful video, a question I have is as you mention in your video that the AEA is reducing to £3000 from April 2024, does it mean if I withdraw money from crypto exchange before April 2024, I can still use the highter AEA amount ?
Thanks James. I all honesty it sounds like a nightmare. I usually convert my pounds straight away into a dollar stable coin, and most of my transactions are therefore in dollars. I did not keep any records on the dollar/gbp price as I saw that all my transactions were automatically recorded for me. So far I have not made any money, but I think it will be very hard having to work out what the pound was when I bought in dollars. Also if your spouse or partner earns less than the £52,000 then use up their 10% allowance by gifting them more crypto to offset capital gains tax. Hopefully I will be able to afford a good accountant when the time comes.
If you buy £10k worth of BTC and the sell £1k after a doubling of the price of BTC, what tax would you pay? Ignoring for a moment the allowance. I just am unsure if taking out less than your original stake is considered profit because the price has doubled. In theory you can still make an overall loss if it falls.
Hypothetically, say I earned £40k per year but made £20k profit from crypto, would some of it be taxed at 10% and some be taxed at 20% as that income from profit would push me from 40k income per year to 60k (over the 50,240 tax bracket).
Thanks James that's very clear. Do you have any information concerning losses e.g. Celsius going into administration and whether you can offset the losses on CGT in the UK?
Don't sell or trade until the rules change or you are under a different jurisdiction. Scottish independence /Marry a EU person / just hide under radar and hope HMRC don't find you
Thanks, Mike! I am hoping to do a video with a crypto tax advisor/accountant soon if that would be of interest? There are some companies that offer this if you needed one sooner though, that you can search for online
Can I also add about staking. Really it is like getting interest on your money, and should not be taxed as income. If that were the case could you use the first £1,000 in interest which is tax free to offset it. One thing for sure is it is a nightmare.
Do you have any guidance on what's the UK tax treatment of crypto distributions from Celsius or FTX where most customers will be losing >50% of their crypto? what to do now post distribution?
I had a dream to buy a house here, now I have just one option, go back to bulgaria and enjoy life from my crypto profit, but never pay taxes, 3 years stay with minus 60% and after hold 3-4 years pay lots of taxes
Great video. Just wondering if you know much about the Celsius bankruptcy case and how the Uk treats the tax in this case? I’m looking to receive about 48% of my crypto back and wondering if the 52% can be deducted as a lost crypto
Great video James. Does your crypto become taxable even if sold but sitting as cash on the exchange? Or only when sold as fiat back to your bank account? Also, do you need to inform hrmc regardless if your profits are above the CGT threshold?
@@goranspain6167 Is the 'Yes' for only being liable for tax when it's sent back as fiat to your bank account? Or is it a 'Yes' to you being liable even if it's sitting in an exchange? Thank you if you can help :o)
@goranspain6167 Thank you for this. I'm struggling to get my head around it. I have so many questions. Think I'll need an accountant. I don't get get how it's taxable when it's investments and it's unrealised profit. I won't have gained until I cash in the investments into Sterling. And if I pay capital gains tax on the investments this year how do I make sure I don't pay tax on them a second time when cashing the crypto in for sterling and transferring it to my bank account. That will cause another trigger notifying HMRC of a capital gain. It's a crazy process.
James, just to clarify on what you said.. if your profits on crypto are your sole source of income then this is subject to income tax (of which the allowance is £12,570 (22/23) for instance) and NOT looked upon as capital gains, therefore, the £6000 CG allowance does not affect you?
What happens if i make a profit enough to be able to open a bank account in lets say the UAE, I sold my crypto for fiat and put it into my UAE bank account? Would I still be required to pay UK tax if I am a UAE resident
How about to not pay tax from crypto gains legally. When you make gains then buy a gold because gold is not taxed and then sell gold for cash. ? Is it right or missing out something?
Hey there James, do you need to pay tax if you trade crypto for a living? If so, then how much crypto would you need to withdraw to your bank account for it to be a taxable event?
Thank you for the good job always. Please, can you make a video on the losses. For example, I started crypto trading in 2021, a few months later crypto crashed and I lost more than 20k and I have never made a profit since.
What if you borrow off your asset i.e get a collateral loan against it? Lets say your lent out bitcoin that is being held goes up by 80% whilst you have the loan. When yiu pay back the loan and receive your bitcoin back, do yiu have to pay any capital gains tax because the asset appreciated whilst you had the loan?
if you try to invest: bank blocks deposits, warns of risk and does everything they can to stop you.
If you make money: give us 20%
if you lose money: we told you not to do it
All these tax rules yet they will tell you Bitcoin has no value. 🙄
12k allowance down to 3k... what a robbery
Yes, that is absolutely ridiculous! 😢
They were talking of bringing capital gains rate into line with income tax so we got off lightly and capital gains in this country is still quite low.(it was far higher not that long ago).
@@AIJimmybad urgh depressing
@AIJimmybad then we have to pay 20% on everything we buy with the profits we have left... I do wonder where all our money disappears to. Roads are falling apart, nhs also. Gangs of immigrants on the streets. The rich don't care, the system is set up to protect them. Lower middle and working class get the shitty end of the stick once again.
It’s 30% in the USA
I have no plans of paying tax on crypto anytime soon. This time, the government will not win. There are ways around this, but I recommend caution and research on the matter.
It's mental. They offer no service and try to stop you being able to buy it but want tax on your hard work. Also how can you tax turning ETH in lnto SOL?
They really are some grubby corrupt scumbags. Moving the goalposts inflating away our currency lying about inflation. If even half the population understood how abusive fiscal policy has become there would be riots in the streets.
@@chriss1384If the conversion is not done through fiat currency (GBP), I believe you have to record yourself what the price of both ETH and SOL was at the time of the conversion. This is on you to do. Most exchanges (Coinbase/Revolut) will do the conversion through your designated fiat currency, so they can provide this information and give you the precise amount of the conversion either side. But the smaller (unregulated?) exchanges might not do this which is where it becomes potentially problematic for you.
@chriss1384 It's a taxable event. The government want to take the shirt off our back and spend it on illegal wars and to line their pockets. That's why its best to leave so they cant get their grubby hands on it!
I know the secret. BTC to Monero, make 3 mill, get a one way ticket to a nation w no extradition, convert back to fiat, relax.
Chasing everyone for tax now! All so we can afford to pay the £8 million per day to house economic migrants(chancers)in hotels. What a joke the UK has become.
Surely you mean the government are a joke? The UK is a great country, idiots in charge are quite the opposite.
The migrants is a smoke screen. How much are we paying Israel to prop up their war?
💯
I don't see why we should be using taxes to house these people , I don't want them here I didn't vote for our taxes to be used to house and feed them so why should we pay taxes
We all just paid over £100 Million for the Kings coronation, we pay daily millions for a police force that don’t do their job and then go eat kebabs every other evening with our tax money and the same for councils we pay for their salaries and guaranteed pensions so they can sit chat and drink coffee and maybe send an email here and there and get nothing done anyway. You’re right! What a joke
Great videos especially for UK based people. Much needed as there seems to be little or nobody else giving this info in easy format. Well done 👍
Glad it's helpful!
@jameskay428 yeah, much appreciated, thanks, very easy to understand
This is ridiculous you should only be taxed when you sell your crypto for a profit that’s it!! No Tax for swapping or selling to buy another coin.
100% I’m not paying any tax no matter how much a I make
I will do the same , better to go in prison then to pay taxes on my crypto , let’s say on 1 million crypto profit I have i have to pay the Mafia government 400 000 £ no way
That sucks. I moved to the UK from Germany because salaries are much higher here and income taxes much lower than in Germany. But the crypto tax laws absolutely suck in the UK. In Germany that's much easier. On the other hand the German government doesn't skip any opportunity to steal money from you via income tax, capital gains tax on stocks and ETFs, etc.
Maybe I should just move to Portugal. Better weather anyway
I think Portugal changed their regulations recently, and not so favourable anymore. Malta may be a better choice. If you dont mind livng on a hot rock.
@@cordyoneyou need a real stack to get Malta 🇲🇹 residency
If you hold for more than a year in Germany I thought crypto was tax free ??
@@cordyonelong-term holdings for more than 1 year are not taxed in Portugal, no?
Its a joke here in the UK. Crypto hub my ass
Pay tax on my salary, invest part of it, still get tax on the investments made from an already taxed salary 😢😢
Same as the inheritance tax BS. You get taxed again! I really wish people would push back harder on these unfair double taxations. I am still relatively small time but wealthy enough and if I am furious! I can only imagine what those with huge portfolio's are thinking. Money will be exiting this country at a historical rate and then what is the government going to do? The UK will decline and become practically a third world country within 10 to 20 years if the government do not smarten up.
Just cash out your profit and answer questions later if HMRC get round to you (90% chance) they wont.
Taxing stablecoins is madness. I moved to Austria. Here you can sell crypto for stablecoins and that is NOT a tax event. If they are going to do that, the only way it would work is if it is an added tax at the time of selling/swapping and the responsibiity of the exchange. It would still suck, but that is only way to avoid a huge mess. I thought the UK wanted to be a progressive "crypto hub"? Everyone in the industry will leave.
Thanks for the update from Austria!
Wait selling crypto for stable coin is not a tax event in Austria? Ist das wahr?
The UK is governed by thieves and liars.
Correct. if you off-ramp to fiat, then it is taxable. @@Philstoned
@@Philstonednor in other countries, like Romania
Fuck the government
Eventually I’m moving to the UAE. 🇦🇪
Not sure their government is much better. Especially if you like human rights..
@@AC-wz9txstill better than the UK
dont for get to give up your UK citizenship big boy, pop into british embassy a few months after you leave, and say you no longer need it, otherwise if HMRC finds out you cashed out massive gains in UAE whilst you were UK tax resident, be rest assured Interpol will be coming for your ass, HMRC loves tax evasion, and if the fruit is low hanging the will scoop the FRUIT - whop whoop whoop. These good dam moonbois, aka zi crypto investor, high IQ savages, savvy f.. financiers... blyat
Criminals that's what they are.
They will be WAR in UAE soon 🤣😂
I think there's a easy way round it. Get a bank in a different country and directly transfer the funds into that.
easier said than done.
@@hongk0ngfu3y Not if you have funds and the know how from pros.
You’re a U.K. citizen it doesn’t matter where the bank is. You need to pay tax.
@benjaminollis7621 it depends which bank. it doesn't cost millions or even thousands to open a bank in most other countries. its how most our politicians get away with paying no tax.
@benjaminollis7621 It all depends which ones. Bank of Thailand, switz bank, Dubai bank, Japan bank and many more over 100 infact. They each have different requirements to set one up. Some are easier than others it all depends on your personal circumstances.
The reason i mentioned those banks is because their pro crypto and signed up for digital currency. Some countries are anti crypto. A bit of self research will show you which one is which.
If you made enough on crypto no bank will be a problem. As it goes straight from crypto currency into which ever foriegn bank your with. Avoiding any taxes from UK. Of course if your wanting to withdraw/send over money from bank to bank there can be charges applied.
One of your goals should be to try gain as many passports as possible. For this it makes opening banks so easy. It also protects you from future lockdowns where one country could be banned from travel yet you can just whip another passport with a country what hasn't be banned from travel. It also doesn't make you beholden to one government but multiple. Say if one country wanted to put you in jail, you could be protected by another country. Its what all the rich and powerful do.
For me personally im working on to gain enough to leave UK for good. Its a failed society. With insain tax rates prices going up crime going up and shit weather. 😂
Best crypto tax video out there 💯 Amazing 👏
Crypto is basically gambling. I dont understand how they can tax it! Let people have their wealth ffs. We dont get bailed out if we lose our money like with terra luna or ftx
Hey James, great stuff.
I began buying Bitcoin in 2014 and I have made enormous gains since. I am a Hodler too, but I did spend some on a BMW 630i Sports Coupe a couple of years ago. I bought the BMW using Bitcoin, and paid an amount equal to thousands in fiat money. However, because I used Bitcoin bought in 2014 the relative cost of the BMW to me, in fiat, was £26.80p lol.
I declared all of my Bitcoin, and some alt coin dealing, to HMRC via self assessment in tax year 2022/23 using an accountant. The self assessment has been submitted so I am now completely up to date with everything. It's a good feeling to be honest.
I don't undertand how regular defi users are meant to keep track of every crypto sale, you can easily be making dozens of transactions a day
Spreadsheets. Easy.
@@chrisalexander4611 I have bots that do the trades for me while I sleep 100 times or more per week. How to track this for tax purposes?
It's pure theft , spreadsheet or not
@@acidthunder1 all taxation is theft. But until they come up with a better way of paying for things we have to cough up.
The UK government has never learned. This is the reason why the USA fought for their independence. We are being taxed a lot, and yet the wives of our politicians are getting away with tax evasions.
Well it looks like the goverment is trying to get as much money as possable from us, even after we have already payed tax on it. But they need the money to pay for the new uk residents moving in.
Thank you so much for covering this James. Seems like the prohibitive regulations for UK crypto investors are meant as a deterrent from engaging with it. I would be concerned as a government too if my currency was backed by nothing, heavily inflated, bought me 86% less than 50 years ago when there are now countless alternatives (albeit some better than others).
Well said
This is deeply disturbing. The govt is into everything we do. I'm almost 60 and looking at spending time to learn how to use a dex and cold wallet(s). I don't mind paying SOME tax, but ffs.....£3k allowance...really? Plus, if you're into crypto, there's no help if you lose 73% of your investment for instance. Dunno about I'm George, we're all George. We're all fooked!!
In Germany, cryptocurrencies count as “other economic goods” and the sale thereof as a “private disposal transaction.” Profits from cryptocurrencies are taxed at the personal income tax rate. Hold your crypto assets for one year and you won't pay tax.
Thanks for the info on Germany!
Really? Wow nice
Or just get Koinly to do the whole thing for you. Can't fault it all.. Tracks all your central exchanges trades and defi swaps etc with historical price data for free.. You only pay when you want it to generate the actual tax form.. But even then you could simply write it yourself from the free account.. Litteraly logs everything for you
that's only easy when you are new to crypto and/or with few transactions. I have been in crypto since 2018 using Multiple exchanges, DEX's, Non custodial wallets, NFT's, 14K transactions and to top it all off some of them nft's/tokens are no longer active with any data to find. Koinly gives me hundreds of errors after linking all my wallets.
WTF! am I supposed to do?
Government turn up late to the party and now expect us to just pay like its easy, its a nightmare.
Been using them for a few years now and really great accounting software …..
Can I ask if you do use your spouse’s allowance in any tax year does the trade have to be two separate ones to take advantage of it or can you use her allowance if there’s just one taxable trade on your own exchange?
Don’t think you are alone in this. I think you need to soft delete all the errors to make it balance @@staggamatron9245 I have the same but haven’t been trading as long. I think as long as it looks reasonable. I use Coinstats too and got to the stage that both agree as far as portfolio values go. Coinstats don’t do uk tax reports tho and the Koinly videos are pretty good .. time consuming though
You can’t use your spouse’s allowance. You can transfer crypto to them free of cgt and they can dispose of it .. same result @@open_water2411
Honestly I will only pay tax when I cash out can’t be tracking all this and paying taxes makes it not worth while. Crypto is gambling on the money I use from work that I paid tax on.
Agreed totally criminal UK government are
I only mine crypto, the UK wants to be a hub for crypto but is going the wrong way about it with all these taxes.
I've been in crypto investing since March 2021. I never kept record of transactions and some of the exchanges/apps that I used went bankrupt , so how the hell am I going to remember what I bought or sell in what price?!!!
The best way is to use an app eg Koinly, or other good ones. They let you link your wallets and automatically work out the gains and losses.
Get a plane ✈️ ticket 😅
The uk government are completely clueless about this as they are with everything else. As far as I'm aware. I can go through my bank accounts to see what I've invested over the last few years and I'll pay 20 percent on any profit after my original investment. That's what I'm doing. They don't have the resources to go through everyone's transactions. Ludicrous!
Just a little correction, capital losses can be carried forward indefinitely, but have to be claimed (on a tax return or by letter) within 4 years.
Hey fella, would I be able to use your comment in my crypto tax article? I would just screenshot it and display it as it is and I can do it with or without your name displayed having your name drive traffic to your channel though! Cheers
No problem - happy to help!
Great Video , i personally hold all my crypto as long term investments , holding past 12 months before selling, this means you only pay tax on 50% of the Gains
not in uk
Excellent video!!! Thank you so much 👍😊❤
Thanks, glad it was useful!
Will be interesting to see how HMRC cope with this going forward. I claimed a loss for 2022-23 which can be carried forward to offset against the coming bull run’s gains .. hopefully 😂 with an annual exemption of only £3k I’ll need all the offsets available. Koinly will prepare a UK tax report .. there may be others but I don’t know of them. Really though, without using third party software I imagine it’s impossible for traders to keep track with thousands of transaction each year, yet still not accepted as trading by HMRC. Would be simpler to treat crypto as one asset.
If I earn significant amount of money worth mentioning to tax man, I'll hire someone to write every single transaction by hand. All the wallet addresses, txn hash's etc 😂. Also I am going to use Messier M87 eth mixer to hide my transactions. Screw the tax man
Won't work like that, do more research you will incur penalty's when you cash out to fiat, you can't escape it...unless the obvious ! Move out the country for 5 tax years...but pfff .. who is going to do that ! Some will, not many @@mouzes9097
Just moved to the UK! Great video James! 👍🏼 Thank you detailed info!
Crystal clear advice, 😊
Thanks for the video! Nice and clear overview about crypto tax in the UK..
Thanks, glad it was useful!
Great update, valualbe info that I've been searching for!
sorry I get paid onto my cold wallet and lost the keys for it 🤷♂
This is an excellent channel for the serious investor, it's both comprehensive and simple to understand. I always thought that capital gains tax was a flat rate of 20%. It's great news for people like myself paying only 10%! Thanks for the info, it was both informative and interesting.
So
Last year I made £100k the government will take £20k for free.
This year I'm losing £100k, will the Gov give me £20k?
No, I guess, so on that note F&#* you and catch me if you can 😅
Simply deduct what you put in from what you take out less your annual exemption - doesn’t have to be difficult
That means I will be paying 40p for every £1.00 I make a
This government doesn't want you to own anything
You’ve only just figured that out?
Get it right this government wants us to own nothing an be happy 2030 agenda
How 40p? Its either 10p or 20p
Thank you for the info:)))
Just a question please: when do we have to pay tax? What if we gain profit but left all money in exchange? Do we need to pay tax when we sending money to our bank account?
Keeping a track of wallet addresses!? That is insanity!!! Writing down all the addresses is a nightmare.
I don't see the point in it. Why can't you simply let the taxman know your profit and simply keep records for the FIAT money going into crypto and the FIAT money coming out when you sell. Typically, people put FIAT into Coinbase and convert it all to Crypto. They then sell to FIAT when they are happy with their profits and cash back to their bank account. Surely they do not need to know that you sold crypto for crypto. What matters are the transactions out of FIAT and back into FIAT.
Is crazy imo@@footyball66
@@footyball66 probably because it would be easy to swap your crypto into stablecoins then wait for the bear market again then swap bk to crypto.
@@Marsh1983 I don't think switching to stable coins should be seen as realising profit. Realising profit is when you swop for FIAT money. If you swop to stable coins to then get back in during the next bull market you will sill need to realise profits at some point in the future by getting that money back to FIAT and you r bank account. If you go back to FIAT, like me, I don't see why you can't just tell the taxman that you profited by X amount and leave it at that. Why would they bother you for not listing every transaction if you paid the correct tax amount, it's pointless for them to do so.
@@footyball66 I totally get it. Shouldn't be taxable till it's in the bank.
Very good James. I wish you great success in the future.
If its your only income its 20% tax over the £12,500 soon to go up. If you already have a job then it's cgt. Most are still down from 2021 so most accounts were negative going in to 2024
Great video again James.. Be good to see one on how things may look with airdrops & other distribution rewards.
Crypto is outside of the traditional financial system so also outside of the governments control, what they are doing is called government overreach. How will they proove who owns which address or funds?
Really appreciate you keeping us brits up to date
DEX’s are the answer .. just the question of cashing out somewhere 🤷🏻♂️
Send to a pre payment credit card. simples
Can buy precious metals online using crypto. Then offload at a local jewelry store. Or find a platform offering crypro visa cards and spend crypto directly.
I use CHNG - but how to then cash out 'profits' without the bank or gov knowing?
Could you suggest one? Like Monzo? @@barrytherave1345
Can you name a DEX without KYC?
Its about time we stop agreeing to be bent over. How can HMRC say that crypto is "not a recognised currency" yet still demand income tax on it? They treat it as a Currency AND a property, depending on what suits them.
Very helpful mate thank you 😊
Thank you James, another good up to date video.
Thanks, glad it's useful!
Thx for the update appreciate it as always .!!👏
Thanks for the comment and you're welcome!
The current tax regulations surrounding crypto assets is not sustainable. As BTC and others become more widespread as a medium of exchange the harder it will be for UK and other countries to enforce.
Don’t like their regulations? Find a country without stifling tax conditions and spend there. All you need is a decentralised wallet, and soon enough it won’t be necessary to convert back to fiat.
Great info James, thank you!
Glad it was helpful!
Helpful content, thanks
I'm a miner who has been pre-mining a coin for over a year. At present there is no off ramp unless I swap it for Bitcoin. This now means I have to pay tax on the coin twice, just to be able to get it into my bank account. How is that fair? Why should you have to pay tax on conversion because you are not making any money. The amount you receive on a swap is equal to the amount you put in to swap. This is screwing us all over in order to fund tax cuts before the election.
Thnx James... gr8 video... complex rules described very simply with examples
Glad it was helpful!
Thanks for the video. Do you have an idea if we need to declare as income unrealised staking rewards ? Is there any limit? Considering the staking rewards are like 100-200£ a year
What’s the deal with inheritance tax? So my father leaves me 100k which he earned fair and square paying all necessary taxes throughout his life. I get this inheritance and have to pay tax on it AGAIN? Unless I have missed something it just doesn’t seem right?
threshold is 375k so most will pay if inheritance includes a house
Stop complaining and pay up. Politicians and the civil service (UK) need your money too.
@@user-cb8ip8fq8e stop being a simp defending people that dont care about you. We need it more in our pockets to get on with our life then the government who are very skilled at wasting it anyway. it's tax, on top of tax,on top of tax, which is unacceptable.
@@denaco you’re talking to a BOT😅 biggest clue is always their username… i.e. vtr236;8ty or some random thing
@@Logies_right_hand lol damn, didnt notice the name. how lame people programme bots to leave that type of reply
Great video but Airdrops are the majority of gains in the space. Interestingly HMRC said that if you sell at time of claim then there's no tax owed as you sold at market value but if you held and airdropped token appreciated then you would owe tax. Seems very unclear on their side but seen several statements where this was the case and if you sold after that token went down that's technically a loss.
Can you make a video on how what options there are left to Off Ramp GBP in the UK in 2024? Coinbase seem to be freezing accounts left right and centre
Coinbase allow off ramping to bank accounts. You'd have to check if your own bank allows it or has put any limitations on.
I only know uphold and lobster as binance don't anymore, so would like some other options.
They froze my account too I recently made a new one to off ramp as bitget has suspended GBP withdrawals only to find coinbase has done the same. The trading pairs with GBP on coinbase are for 'view-only'.
I use FCFpay visa card to spend my crypto in the UK. Currently rebranding to Zyptopay. Saves sending to exchange, selling and off ramping and getting phone calls from my bank
Monzo
I don’t understand if we are due to pay taxes if we stay in stablecoins once we have sold
thanks for you valuable info, greatly appreciated !!
Glad it was helpful!
Really good video fair play bro
Good explanation , thanks
Hi James,
Could you please help with a couple of questions below?
If you periodically get crypto staking rewards in the form of additional crypto that is locked (3day unlock period) when is it classed as income.
Also, how do you determine the actual income? When you periodically receive crypto rewards throughout the year and the value fluctuates?
@ James : Thanks for the very insightful video, a question I have is as you mention in your video that the AEA is reducing to £3000 from April 2024, does it mean if I withdraw money from crypto exchange before April 2024, I can still use the highter AEA amount ?
That’s exactly what I was thinking…
Thanks James. I all honesty it sounds like a nightmare. I usually convert my pounds straight away into a dollar stable coin, and most of my transactions are therefore in dollars. I did not keep any records on the dollar/gbp price as I saw that all my transactions were automatically recorded for me. So far I have not made any money, but I think it will be very hard having to work out what the pound was when I bought in dollars. Also if your spouse or partner earns less than the £52,000 then use up their 10% allowance by gifting them more crypto to offset capital gains tax. Hopefully I will be able to afford a good accountant when the time comes.
What are the tax laws regarding using BTC as collateral for a loan, in the UK, 2024 ?
Great work thank you 👍
Glad it was useful!
If you buy £10k worth of BTC and the sell £1k after a doubling of the price of BTC, what tax would you pay? Ignoring for a moment the allowance. I just am unsure if taking out less than your original stake is considered profit because the price has doubled. In theory you can still make an overall loss if it falls.
If you end up 500k in profit, just take your cold storage to Switzerland and open a bank account there. Job done
Really can you bro
@@donking3951 yeah sure. There's videos on RUclips explaining the process.
You still have to pay tax in the UK if you return within 5 yrs.
They still have kyc in them banks and report to hmrc, its been reported several times..
great video! Thanks, Do you still need to declare if you only pay out up to 3000 a year?
Hypothetically, say I earned £40k per year but made £20k profit from crypto, would some of it be taxed at 10% and some be taxed at 20% as that income from profit would push me from 40k income per year to 60k (over the 50,240 tax bracket).
Your income would be taxed at 20% after 12,500 but the crypto gains come under capital gains don't they not income tax. Unless your a declared trader
Thanks James that's very clear. Do you have any information concerning losses e.g. Celsius going into administration and whether you can offset the losses on CGT in the UK?
Can anyone mention some useful way of bypassing these ridiculous laws ? the last thing I wanna do is pay more taxes on a passive income .
Don't sell or trade until the rules change or you are under a different jurisdiction. Scottish independence /Marry a EU person / just hide under radar and hope HMRC don't find you
Great video James, any tips on how to find a good accountant that specialises in crypto?
Thanks, Mike! I am hoping to do a video with a crypto tax advisor/accountant soon if that would be of interest? There are some companies that offer this if you needed one sooner though, that you can search for online
@@jameskay428this would be great, James. Or at least a vid listing reputable crypto accountants 👌
Can I also add about staking. Really it is like getting interest on your money, and should not be taxed as income. If that were the case could you use the first £1,000 in interest which is tax free to offset it. One thing for sure is it is a nightmare.
Handy vid my friend👍
Do you have any guidance on what's the UK tax treatment of crypto distributions from Celsius or FTX where most customers will be losing >50% of their crypto? what to do now post distribution?
Great video. Do staking rewards fall under the £1000 miscellaneous income allowance?
I had a dream to buy a house here, now I have just one option, go back to bulgaria and enjoy life from my crypto profit, but never pay taxes, 3 years stay with minus 60% and after hold 3-4 years pay lots of taxes
Thanks for the video! Are there any crypto accountants you could recommend?
Great video. Just wondering if you know much about the Celsius bankruptcy case and how the Uk treats the tax in this case? I’m looking to receive about 48% of my crypto back and wondering if the 52% can be deducted as a lost crypto
Thanks for this
Do you pay tax for crypto loans?
What your saying makes no sense if you cant offramp your profit
Just HODL
Great video James. Does your crypto become taxable even if sold but sitting as cash on the exchange? Or only when sold as fiat back to your bank account? Also, do you need to inform hrmc regardless if your profits are above the CGT threshold?
Answer on both questions is yes mate, by the new crypto government rules is YES which is sucks everyone in crypto investment 😢
@@goranspain6167 Is the 'Yes' for only being liable for tax when it's sent back as fiat to your bank account? Or is it a 'Yes' to you being liable even if it's sitting in an exchange? Thank you if you can help :o)
@@RobQos both are taxable if they siting on the crypto exchange or withdraw to bank account, this is only in UK
@goranspain6167 Thank you for this. I'm struggling to get my head around it. I have so many questions. Think I'll need an accountant.
I don't get get how it's taxable when it's investments and it's unrealised profit. I won't have gained until I cash in the investments into Sterling. And if I pay capital gains tax on the investments this year how do I make sure I don't pay tax on them a second time when cashing the crypto in for sterling and transferring it to my bank account. That will cause another trigger notifying HMRC of a capital gain. It's a crazy process.
Hi quick question, is there such thing as a short term capital gains tax? Or is it soley as you described in the vide?
What about inheritance? My dad just passed away and we want it to go to my mum.
James, just to clarify on what you said.. if your profits on crypto are your sole source of income then this is subject to income tax (of which the allowance is £12,570 (22/23) for instance) and NOT looked upon as capital gains, therefore, the £6000 CG allowance does not affect you?
What happens if i make a profit enough to be able to open a bank account in lets say the UAE, I sold my crypto for fiat and put it into my UAE bank account? Would I still be required to pay UK tax if I am a UAE resident
I’m thinking exactly the same. I would imagine you’d have to be a resident or have some sort of work permit to be able to open an account there.
How about to not pay tax from crypto gains legally. When you make gains then buy a gold because gold is not taxed and then sell gold for cash. ? Is it right or missing out something?
Thank you. Could you get actual crypto tax adviser with you on video
Hey there James, do you need to pay tax if you trade crypto for a living? If so, then how much crypto would you need to withdraw to your bank account for it to be a taxable event?
That additional 20% above the basic rate when you earn below 50k is nuts!
Thank you very much😍
You're welcome!
Thank you for the good job always. Please, can you make a video on the losses. For example, I started crypto trading in 2021, a few months later crypto crashed and I lost more than 20k and I have never made a profit since.
Same 😩
What if you borrow off your asset i.e get a collateral loan against it? Lets say your lent out bitcoin that is being held goes up by 80% whilst you have the loan. When yiu pay back the loan and receive your bitcoin back, do yiu have to pay any capital gains tax because the asset appreciated whilst you had the loan?