Cryptocurrencies - be aware of potential tax liability
As the self-assessment tax deadline looms, you need to be aware of the tax implications on any gains from investing in cryptocurrencies.
Some investors benefit from the Capital Gains Tax (CGT) ‘annual exemption’ which means investors can make gains of up to £11,300 in the 2017/2018 tax year before any CGT is due.
Where capital gains exceeded £11,300 in the 2017/2018 tax year, there is a charge of 10% or 20% depending on whether the investor is a basic or higher rate tax payer.
HM Revenue & Customs guidance is that a tax liability could be due to anyone with is selling crypto-assets for money, exchanging crypto-assets for a different type, using crypto-assets to pay for goods or services, or giving away crypto-assets to another person.
This guidance may come as a surprise to cryptocurrency investors and it is therefore importance to obtain specialist professional advice.
For advice, help or more information on this, please contact Jenny Armstrong, robinson+co’s Chartered Financial Planner on 01900 603623 or firstname.lastname@example.org