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UK taxes and cryptocurrencies

Personal Finance & Money Asked by mik on February 9, 2021

I live and work in the UK. I work at the company, so my employer handles the income tax. I also own some stocks but I keep them in stocks and shares ISA, so I don’t have to pay tax on them. Now let’s imagine that I start trading cryptocurrencies. As far as I understand, I’ll have to pay Capital Gains Tax if my total gains on selling cryptocurrencies exceed £12,300.

  • If my gains do not exceed tax free allowance, do I still need to report anything to HMRC?
  • Do I understand correctly that if I own two cryptoassets, and I sold one of them for profit of £13,000 but another one for loss of £1,000 within the same financial year, I should calculate my total gains as £13,000 – £1,000 = £12,000, and therefore I am not subject to the Capital Gains Tax?
  • When thinking about the gains on cryptocurrencies, I don’t have to think about the gains on stocks that I keep within an ISA, right?

Thank you.

One Answer

  1. No, you only have to do it if the assets sold are more than 4 times the allowance, but it may be worth doing for peace of mind, incase you get audited.
  2. Yes, you can deduct sold losses from the overall sold gains
  3. Correct, ISA is wrapped and is separate.

Answered by Philip on February 9, 2021

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