Turas Crypto – Capital Gains and Cryptocurrency

The current regulations that the HMRC have set in place for the UK regarding cryptocurrency is that an individual will be liable to pay Capital Gains Tax (CGT) when they dispose of any crypto assets they may have.

What classes as a disposal for Capital Gains Tax (CGT)?

If you are classed as an individual and you are holding cryptocurrency, which you use as an investment then you may be liable to pay capital gains tax when you make a disposal. Most investors are generally not aware of what a disposal is.

HMRC has outlined that a disposal takes place when:

How much Capital Gains Tax will you need to pay?

As with any income you receive, you will inevitably need to pay tax on your profits from any cryptocurrency transactions that you make. The amount of tax you will pay depends on what rate band you fall under for income tax.

The amount of tax will be calculated based on the size of the gain while also utilising all of the available allowances.

As with anything tax related, your individual circumstances will largely determine how much tax you will end up paying. It is extremely important that you understand your liabilities to avoid any unwanted investigations or penalties.

Need a hand getting your head around Crypto? Give us a shout!