Bitcoin Forum

This is my first bull run coming up in the next few years and I am just wondering how tax works when will sell in UK?

Lets say for example by the time I sell I will have invested £10,000 and I want to cash out £100,000 in 2025.

£100,000 minus the £10,000 I invested would leave me with £90,000 profit.

How do I know how much tax I need to pay on that?

I read online it depends how much income I make but is that from my own job outside of crypto or do they mean income made purely from crypto?

I know we have plenty of time still until the bull run but just want to be clear in my mind so when it comes to it I understand how and when to pay tax.

I thought that this forum couldn't have two jerry's, but you are the obvious proof that this is not the case. You've already asked the same thing several times, so I wonder how hard it is to look at your own post history and read all the answers you've already received?

Cashing out fiat in UK? (https://bitcointalk.org/index.php?topic=5453753)

You have to pay taxes AKA capital gain Taxes (CGT) which are comprised of crypto profits and the income you earn from an outside job (other than crypto). Now, how much tax you have to pay depends on your taxpayer level, I mean for basic you have to pay 10% and for higher you have to pay 20% CGT tax (https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/capital-gains-tax). The calculations are easy but first, you need to relax. I am shocked to see how many topics you have created in this same discussion.

I know sometimes, people become skeptical but, if you do not trust others or members of this forum then DYOR.

Well, in short, if you are a basic taxpayer then according to the formula you have to pay £9,000 tax on your £90,000 profit.

OP this is one of the reasons why spamming is discouraged, we cannot keep repeating on same discussion over and over again, maybe if you need more clarity on taxes, payments and performances, economics board is fit in for that, such could also be discussed on the specific local board where the discussion matter directs, you also don't need to keep repeating threads, you can ask further questions on the same thread firstly created in aspects you're not clear about.

Hello all, apologies for the repeated threads this is just my first bull run coming up and I want to know for sure what needs to be done when paying taxes as I have received different opinions and want to make sure I do it right when it comes to it.

My salary is £33k and I pay 20% tax so should I not being paying 20% on my capital gains tax or is it 10% ?

at this point just hire/consult an accountant. As you have said, you have received different opinions and from the looks of it, you are still doubting what to do. doing taxes can be complicated, though it doesn't hurt to ask the community but if you doubt what is being said to you or are still unsure what to do after everything that has been said or explainedl to you, it would best to just hire or consult an accountant.

I'm still not sure what kind of support/help you are looking for, as a fellow above said consider hiring a consultant, Can you mention the options you've got to clarify the whole context, so in this way, you might get a better suggestion as you'll be able to get rid of all these recurrent questions.

Enjoy  ;) also, stick to the tips, don't create redundant topics frequently.

I think you only pay the capital gain.  For example, if you bought 1 BTC for $10,000 and you sell it for $27,000 then you have gained $17,000.  That will be taxed.  If you are getting paid in BTC from an Internet job, then that is not taxed until you cash it out for pounds and report that as an income.