Income tax, GCT allowances re Bitcoin

heisginger

Hi,

I'm a little confused by UK rules on tax allowances.

Firstly, is the CGT allowance additional to the income tax allowance of roughly £11,000?

Secondly, if I dispose of some bitcoin what would I need to collect and how to report on any gains made for CGT?

Many thanks!
Chris

TheCyclingProgrammer

Can't answer your second question I'm afraid but yes, the CGT allowance is separate to your income tax allowance - your gains are taxed separately from income.

Keep_pedalling

Yes, the CGT allowance is seperate. If you have gains over £11,100 you have a tax liability, but if you only crystallise a gain of £11,100 before the 6 April you will have nothing to report, and you can sell more from the 6th April to capitalise on your 2917/8 allowance of £11,300.

If you exceed those allowances you will need to do a tax return.

heisginger

Thanks both for your speedy replies.

So if I'm not mistaken here, I won't need to do any kind of tax return (I have just one job which is paid using the PAYE system) if my capital gains are under £11,000 for the tax year (which they will be by some margin). No forms, no need to provide evidence to HMRC? That sounds like music to my ears.

Cheers, Chris