UK TAX LAWS > Amended 19 December 2019

[CryptoMobster]

Make sure you are aware for each country what the state of your tax is on trading and taking profits

https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals

[1714175654]

1714175654

[eminemcookie]

Would you or someone else who is well versed in this area be able to explain the changes and what they would mean for anyone looking to cash out?

[CryptoMobster]

Not a lot has changed to existing laws in all fairness. Still comes under the ruling of capital gains (tax on profit) once it has been put into fiat. This is just a big area for it. It is all explained. A few little changes when it comes to mining income, airdrops etc but if it is with profits over capital gains tax, it isn't too bad at all.

[el kaka22]

Basically in layman terms this means if your money makes you money you pay taxes. When you have a business that you buy a product and sell a product you pay a different tax, when you have a house you rent out to you pay a different tax, when you have pound sterlin in your bank that makes you money like stocks or savings accounts you pay a different tax. Crypto profits come into affect with that last one, it is same as having some pound sterlin on your bank account and profiting from that, "money making you money" deal. Crypto is considered exactly the same.

Even tough country doesn't really see crypto as "money" just yet, it is basically putting it at the same place with "money" they consider to be real. Hence, you will be paying taxes depending on the profit of your money, so if you had 1000 pounds and made it into 1200 pounds you do not pay taxes on 1200 pounds, you pay taxes on the 200 pounds. As far as I know.

[Theb]

Would you or someone else who is well versed in this area be able to explain the changes and what they would mean for anyone looking to cash out?

I don't know if you had read the article or not but the article provided is already easy to understand and is very straightforward with the topic. Unlike other regulatory framework which goes straight to the changes in tax rates the UK government's one actually provided definitions and how you can categorize each kind of cryptocurrency and from how did you get it whether it is from trading or mining. To top it all they also provided some example computations on how you will calculate your tax on your crypto earnings, and to be honest it even looked like a guide for newbies.