crypto Archives - Redbox Financial

Category Archives for crypto

Are any crypto activities tax free?

Buying crypto with fiat currency is tax-free.

Holding crypto is tax-free.

Transferring crypto between your own wallets is tax-free.

Donating crypto to charity is tax-free.

Gifting crypto to your spouse is tax-free (take advantage of unused capital gains allowances).

Did you know all about these? And do you know what type of crypto transactions are taxable in the UK? Let us know in the comments!

Can HMRC Track Your Crypto? You Might Be Surprised!

  1. HMRC has a data sharing program with all UK exchanges.
  2. HMRC has transaction data from as far back as 2014.
  3. HMRC has access to the KYC information you provided to exchanges or wallets.
  4. HMRC has been working with large crypto exchanges to share customer information.
  5. HMRC uses this information to send reminders to report crypto and pay taxes.
  6. Coinbase began contacting customers with more than £3,000 in crypto in January 2022 to inform them of information sharing with HMRC.

How do you feel about HMRC tracking your crypto transactions? Let us know in the comments!

Disclose your crypto gains

UK Crypto Tax: Make sure you disclose your gains, or you could face big penalties

If you own cryptocurrency in the UK, you need to know how much tax you have to pay. HMRC views Bitcoin and other cryptocurrencies as taxable assets and has a data sharing program with UK exchanges.Because HMRC sees crypto as a capital asset, when you dispose of a capital asset – you’ll pay Capital Gains selling crypto for a fiat currency, or another crypto currency, or spending it or gifting it.

Also the government recently announced a cut to the Capital Gains Tax allowance from £12,300 to £6,000 from April 2023.

Don’t get caught out, find out how much tax you have to pay on your crypto in the UK now.

Did you know about this? What do you think about it, and do you have any questions? Please comment.