Cryptocurrencies

Larry78

Hi

First time poster asking for some advice :j

I bought some crypto coins a while ago which have appreciated in value- currently stored on exchanges and digital wallets. I'm now planning to withdraw these back to my bank account. I'd like to use some to clear my debts. My question is- what tax is liable and how do I arrange this and can I offset someplace of this against my debts?

Thanks :beer:

antrobus

Larry78 wrote: »

... My question is- what tax is liable and how do I arrange this ....

Capital Gains Tax. You have an allowance of £11,300.

Larry78 wrote: »

...
and can I offset someplace of this against my debts?

No.

Larry78

How and when do I pay capital gains tax? No idea how this works.

Larry78

Am I already liable through holding these coins?

antrobus

Larry78 wrote: »

How and when do I pay capital gains tax? No idea how this works.

You contact HMRC.

How much did you make on the cryptos?

Linton

Larry78 wrote: »

Am I already liable through holding these coins?

You are liable for tax when you sell them for a profit, not until then.

Larry78

High 5 digits. How do HMRC find out? Say I withdraw 50K from an exchange today, what happens? Also got no idea how t calculate my liability as bought bits and pieces over years. What is the rate?

Thanks

agrinnall

I suggest you read this for starters. If it doesn't go into enough detail I expect some of out tax experts will be able to post links to the relevant manual(s).

https://www.gov.uk/capital-gains-tax

With a gain as large as you might have it could be worth consulting an acountant.

Larry78

Thanks, yes good idea.