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Title: Newbie - UK TAX question? Post by: ccx295 on September 28, 2018, 08:34:32 PM Hi all,
I am looking at buying my first coins and I want to confirm the TAX situation if all works out good (In the UK) My understanding is this (buying xrp) - Crypto in the UK is taxed as capital gains tax. 1. I buy £100 worth of bitcoin from coinbase 2. Instantly transfer the bitcoin over to an exchange which deals with xrp 3. Buy XRP with my Bitcoin (if the bitcoin increases in value at this point is it classed as taxable?) 4. After 1 month my XRP increases in value to £200 but I leave it in my wallet (is this taxable?) 5. After 1 year my XRP increases overall to £1100 (£1000 profit) and I decide to withdraw it to GBP So with the above giving me £1000 profit am I right to think this is tax free because it is below the CGT £11k limit, and if so do I still need to declare it to them? Is the £11k limit for anyone no matter what you earn when working a normal paye job? And any profit made over the 11k limit will be subjected to the 20% tax rule? Thanks for any advice, Ccx Title: Re: Newbie - UK TAX question? Post by: bituperio on September 28, 2018, 08:43:46 PM 1. I buy £100 worth of bitcoin from coinbase
NON TAXABLE 2. Instantly transfer the bitcoin over to an exchange which deals with xrp NON TAXABLE 3. Buy XRP with my Bitcoin (if the bitcoin increases in value at this point is it classed as taxable?) NON TAXABLE except in the case you mention, then is taxable. 4. After 1 month my XRP increases in value to £200 but I leave it in my wallet (is this taxable?) NON TAXABLE, no profit made, just potential. 5. After 1 year my XRP increases overall to £1100 (£1000 profit) and I decide to withdraw it to GBP TAXABLE, but below the 11k limit, so you don´t need to declare. Is the £11k limit for anyone no matter what you earn when working a normal paye job? YES And any profit made over the 11k limit will be subjected to the 20% tax rule? YES, but you can transfer to your wife / legal partner half, so the practical limit is 22k. Title: Re: Newbie - UK TAX question? Post by: ccx295 on September 28, 2018, 10:50:10 PM Thank you! Exactly what I was after :)
Title: Re: Newbie - UK TAX question? Post by: Master of Shitcoins on September 28, 2018, 11:00:39 PM Be very careful, investments in shitcoins can end very badly. Better hold your Bitcoin or Ethereum or something else, even Doge is better than Ripple. I would really encourage everyone to avoid Ripple. For more details you can read here: http://stockemperor.com/currencies/ripple-xrp-bad-investment/
Title: Re: Newbie - UK TAX question? Post by: ccx295 on September 30, 2018, 08:47:15 AM Be very careful, investments in shitcoins can end very badly. Better hold your Bitcoin or Ethereum or something else, even Doge is better than Ripple. I would really encourage everyone to avoid Ripple. For more details you can read here: http://stockemperor.com/currencies/ripple-xrp-bad-investment/ Thanks for the advice and interesting read :) |