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Mattermatics, there would be no benefit of a raise, as it’s in a stable coin. The only scenario I can think of where that might provide benefit, would be you put it into a stable coin and stake it, but PoS is taxed as income, so again no tax advantage. You cannot take advantage of a change in price in your scenario as you have put it in a stablecoin. If there is a raise that you are taking advantage of (and the raise exceeds your cgt allowance), you will be taxed on it.
fiat > crypto = not a taxable event
crypto > crypto = taxable event
crypto > fiat = taxable event
taxable events only incur tax where there is profit/a raise in the asset, and that raise exceeds 12.3k, but keep in mind you might have other assets that are liable to CGT which can eat into the allowance.
Unfortunately, HMRC doesn’t view crypto as a currency, and therefore once your CGT allowance is used up, you cannot legally avoid tax where there is a change in value.
What’s going on with the wide eye stare head tilt thing this woman keeps doing? Creepy bunny boiler stare. :(
Thanks Sh20, that's my take also. Which is why I think people will initially loan against Bitcoin and then move to converting parts into other tokens to spend. All the benefits of the raise, without the taxable occurrence, could make it a very popular tax strategy!
to directly answer your question mattermatics, no tax would be due in that scenario as there is no profit
HMRC tax ALL trades, except for fiat > crypto (assuming there is a profit on the trade that can be taxed, of course).
How about if he doesn't cash out but does exchange it for another type of coin or token that is used more for everyday purchases and is as common as contactless payments are now?
The relative value and spending power would increase but no 'gain' has occured from a FIAT point of view.
K3VMC like I said, if he CASHES OUT he will be subject to cgt.
if he never cashes it out he obviously won’t pay CGT, but if he makes a profit on it he will have to pay CGT when/if he cashes out
No. Crypto is not treated as a currency. But even if it were, it wouldn't be CGT-exempt.
Is crypto classed the same as currency then?
Nope. If you buy dollars and then sell them back for pounds you’ll pay CGT. Currency isn’t exempt, other than genuine tourist exchange.
I was thinking this, which maybe a way around CGT in the future. With all these DeFi payment apps coming around, if you can buy something with your asset, can you be charged CGT? Like if I swapped a chunk of silver, for a bigger chunk of gold, I wouldn’t have to pay tax, as I’ve just exchanged assets. Is that right?
Cheers Roofer61 :-)
Wombat42 hope alls well, you missed out the **** eyed pictures , GLA , ARB just keeps on giving
Happy Days
I think I’m gonna answer my own question- I suppose once he has Bitcoin it’s not like him investing in gold or a second house where he would have cgt to pay I suppose if he spends it it would be a bit like putting £50 notes under his mattress and when he pulls them out again if our economy had turned to **** and those notes would get you twice as much then you wouldn’t be taxed because of it- but if you were trading them then surely you’d pay cgt and that’s why some of us are investing in arb through an isa and not trading btc on an open exchange ( eligible for cgt)
Well there is certainly some news and I would say it is going
to land shortly....!! Being invested here becomes more comfortable
and more exciting by the week....Nasdaq will happen...But I think there
is something else to be revealed......Gem of a stock!!
G:LA!
We get that bit- it’s what happens after that that’s in question- ie when he sells his asset.
sh20, there is NO CGT. He gets paid in Sterling, pays income tax and NI as normal, gets a btc conversion rate and they give him Bitcoin.
I’m 99% certain it isn’t Nasdaq they were flirting about , for me that’s a given . Perhaps it’s a jv with some else ..... Tesla in Texas ? but wtf do I know .
Just my twopenn’th on the video. I’m 99.999999% sure they will have had a minute or two of small talk prior to hitting record, she’ll have run through the topics she was planning to cover, always finish on the big one, he’ll have said ‘you know i can’t talk about that’ she’ll have smiled and said ‘you know I still have to ask though’ - it’s a little dance I’m very familiar with from real life and it always engenders those kind of knowing in-joke smiles when the moment arrives!
Any human being can see what it means though. Clock is ticking.
Very good RC :)
mwhite22..'Also got the impression the interviewer thought something big is coming. Maybe NASDAQ but who knows.'
She was asked to say that IMO...it was a 'leader'...big hint..
Now add that to his recent sale of shares...
Where will he be investing that money???
I don't think its NASDAQ ....
Obviously he pays cgt on if he cashes out, as would NI/income tax be paid on it before he receives it. The idea is that it removes a step to go into crypto, if you intend to put your money into crypto regardless this just makes it easier.
@Herdie; Yes.. Both very charismatic.. Certainly fun to watch. Like they both know there's lot's to say, but it can't be said yet....
What I’d like to know is how his tax is gonna work- in theory he will be paid the same salary as that’s what Bitcoin will be worth at that given time but let’s say at the end of the financial year he sells his hodl for double the money will he then pay a cgt on the difference- if he doesn’t then this is an easy way of investing in Bitcoin without paying tax. If he does have to pay a cgt on the profit then I can’t see why any other ceo that isn’t involved in btc ( so no need for the publicity) would bother doing it.
PW may just be my guilty pleasure ;-x