UK 2024 Crypto Tax Rules Update
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- čas přidán 2. 06. 2024
- Check out my previous videos on the new cryptocurrency regulations in the UK (in chronological order):
New Cryptocurrency Regulations Come Into Force In The UK:
• New Cryptocurrency Reg...
New Crypto Regulations Being Implemented in the UK From April 2024. Crypto tax rules part 1:
• New Crypto Regulations...
New UK Stablecoin Regulations:
• New UK Stablecoin Regu...
Which Crypto Exchanges Have Been Approved Following New UK FCA Regulations. Top UK exchanges 2024:
• Which Crypto Exchanges...
UK Crypto Exchanges FCA Regulations Update:
• UK Crypto Exchanges FC...
In today's video I cover:
An example of having to pay capital gains tax on your crypto gains.
What crypto tax deductions or expenses you can claim to reduce your Capital Gains Tax e.g. transaction fees.
What the AEA (Annual Exempt Amount) is?
When you might have to pay income tax on your crypto.
Whether you can gift crypto tax free to a wife or husband.
Whether you can offset crypto losses against your gains or profits.
Whether you’d have to pay inheritance tax on crypto.
What records you need to keep as a crypto investor etc.
It has never been more important to educate yourself financially.
Contact me here if you are interested in working with me:
jameskaylive
jameskay99
Chapters:
0:00 - Intro
1:22 - When do you have to pay crypto tax?
2:35 - Crypto tax deductions
3:24 - Gift crypto to spouse or civil partner
3:34 - Offset crypto losses
3:43 - Capital Gains Tax example
5:43 - Income tax on crypto
6:42 - Crypto inheritance tax
7:00 - How can the government track this?
7:40 - Crypto records you must keep
Disclaimer:
The information contained in this video is for informational purposes only. Nothing shall be construed as financial advice. The content is solely the opinions of the speaker who is not a licensed financial advisor. The speaker does not guarantee any particular outcome.
#cryptoregulation
#uk
#cryptotax
#crypto
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.
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
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?
Yup
💯
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
Just cash out your profit and answer questions later if HMRC get round to you (90% chance) they wont.
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.
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.
Its a joke here in the UK. Crypto hub my ass
Crystal clear advice, 😊
Very helpful mate thank you 😊
Helpful content, thanks
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
Good explanation , thanks
Great update, valualbe info that I've been searching for!
Really good video fair play bro
Great work thank you 👍
Glad it was useful!
Thx for the update appreciate it as always .!!👏
Thanks for the comment and you're welcome!
Great info James, thank you!
Glad it was helpful!
thanks for you valuable info, greatly appreciated !!
Glad it was helpful!
Thanks for this
Just moved to the UK! Great video James! 👍🏼 Thank you detailed info!
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
Great video again James.. Be good to see one on how things may look with airdrops & other distribution rewards.
Best crypto tax video out there 💯 Amazing 👏
Handy vid my friend👍
Very good James. I wish you great success in the future.
Thank you very much😍
You're welcome!
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?
Thanks for the video! Nice and clear overview about crypto tax in the UK..
Thanks, glad it was useful!
great video! Thanks, Do you still need to declare if you only pay out up to 3000 a year?
Really appreciate you keeping us brits up to date
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?
Great video. Do staking rewards fall under the £1000 miscellaneous income allowance?
Thnx James... gr8 video... complex rules described very simply with examples
Glad it was helpful!
Crystals clear thanks
Thank you James, another good up to date video.
Thanks, glad it's useful!
Thanks for the video! Are there any crypto accountants you could recommend?
Hi James! I use Koinly for my taxes and based in UK. How do you tag / label delegated rewards from wrapped flare that come every 3.5 days and the other bigger one which I think is the flare airdrop. Thanks so much.
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?
Hi quick question, is there such thing as a short term capital gains tax? Or is it soley as you described in the vide?
So if im trading day to day, brc/usdt pair do i pay capital gains tax or income tax?
Also if im using an unregulated exchange like bitget, to do futures trading how does that work?
Thank you. Could you get actual crypto tax adviser with you on video
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.
sorry I get paid onto my cold wallet and lost the keys for it 🤷♂
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 🤣😂
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
Do I still have to declare any transactions if I am bellow the capital gains allowance ?
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.
Watch nomad capitalist for info on such things.. that's all fine if you have enough money to do such things legally then yes, can pay little or no tax.. most can't afford such options
@@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.
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?
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. @@philstone7763
@@philstone7763nor in other countries, like Romania
Great video, bank statements and addresses jeeez
@ 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…
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 only mine crypto, the UK wants to be a hub for crypto but is going the wrong way about it with all these taxes.
So if we arent using all (or none) of our personal income tax allowance then is that also subtracted from our crypto profits? Thanks
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
hi how dose it work I brought a mining rig with crypto because that's all they took ,I have mined but sold nothing if I have to pay tax on this wouldn't I get something back for buying the rig.eg would I have to have a business
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.
Which exchange everyone is using for withdrawal to bank? I don’t see any option in Binance or KuCoin.
Hi James, is there not an allowance on your staking gains? I thought I saw £1000 per annum mentioned somewhere. Possibly similar to interest on bank accounts.
called miscellaneous income and is £1000 exempt
@@jdog2169Thought so. Thanks.
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 you lose your wallet your crypto was on?
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
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.
I have heard n read that individual day trading income is still taxed as capital gains. Is this true?
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.
Thanks Ted
What are the tax laws regarding using BTC as collateral for a loan, in the UK, 2024 ?
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.
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
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 don’t understand if we are due to pay taxes if we stay in stablecoins once we have sold
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.
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 you off set your tax. I remember celebs back in the 90s all planting trees as a way to pay less tax. Is this kind of thing still an option. Sorry if this is a daft question.
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!
I thought the capital gains tax for crypto in the uk was 10% for low income and 20% for high income max?? Please confirm
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.
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
Do you pay more than 20% CGT if for example you make £900,000 profit?
What about DEX?
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
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!!
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?
Hoping you can clarify. Is CGT due only on your gains. i.e if I bought and sold a coin a made £10,000 profit and bought and sold another coin and lost £10,000 on it would I essentially be at a balance of £0 for the year and therefore no tax to pay? I understand the £3000 AEA and other deductions but im just trying to understand if the tax is liable on the years total gains. Thanks in advance!
Yes I need to know this too
if I made less than 6 K allowance of profits in the last year do `I still need to inform hmrc ?
Simply deduct what you put in from what you take out less your annual exemption - doesn’t have to be difficult
Hi James, I guess there will be no tax if I win crypto (any value in £) i.e airdrop as a lottery win or gambling. What you think? Btw, thx for great strait to the point video
Thanks great info as always. at what point roughly would they say it’s turned from a trade to an income 🤷🏽♀️ like more the 3 trades? Plus the amount is less than £1000 but let’s say it took you 60 trades to earn that in one year is that an income?! How to know
It's self certified so whatever you feel comfortable arguing in court/investigation.
I'd say if you have a job paying £100k and but ever night you 'play trader' and make £10k... you're still just playing. But if you have no job and make £10k by weekly trades then its income.
It's all about the person. Or maybe your a sole trader or already a director. Maybe you are mining btc. All those things require paying a professional to get to know you and learn whats best for you
How are you ment to log your crypto if you’re getting reward tokens for holding a crypto. So every minute of every hour you’re getting tokens. There is no record of this in your wallet, just your total increasing
James what is the best automated crypto tax company? Or even specialised tax accountants for crypto in the uk? Hard to find.
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!
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.
Would anyone know what the rules for seafarers are. I don't pay tax due to not working or living in the UK for more than 6 months of the year.
I’m exactly the same as you but working the 90 day rule(oil&gas) not sure how it would work with our situation
I have other investments that I am exempt from tax as long as I withdraw from outside the UK.
I will look further into the crypto situation regarding tax . I will post any results I get to as clarity for you and others.
Do you pay tax for crypto loans?
Hi James, my wife is a low income earner but I’m a higher income one earner. Therefore I want to take advantage of her 10% capital gains tax. My question is does the exchange account have to be in my wife’s name or can the exchange account be in my name, but use my wife’s bank account to show that she is purchasing the crypto?
Or doesn’t it matter whose bank account an exchange we use?
Ty
THANX