Bitcoin & Universal Credits & Mortgage

shaun3777

calcotti said:

shaun3777 said:

calcotti said:

shaun3777 said:So just to confirm as its still currently in the coin value 

that is still capital and if worth more than £16,000 you are not entitled to means tested benefits.

Cryptocurrency is very volatile, one day I could have 20k next have 10k, so I need to declare it even though its not in my bank and the changed daily are huge.

Must admit I don't see how this works from a practical point of view for volatile investments.

Yes, cryptocurrency can fluctuate daily 40% down and up. Does this mean I need to declare what I'm on daily ? 

Spoonie_Turtle

As UC entitlement is calculated based on your circumstances on the last day of the assessment period, it would seem logical to me to report the value on that day each month, unless it hasn't changed since the previous month.

Alice_Holt

shaun3777 said:

HI,


January this year i invested roughly £2000 into bitcoin and Matic (Cryptocurrency) and its now worth just over £20,000.

      Capital Gains Tax would also come into play, on these figures.

huckster

Out of curiosity, with Bitcoin, is the purchaser under contract obligation to hold their investment for a set period of time, so cannot access the money until the exit date is reached? 

If there is no restriction on accessing the money, why not cash in for £20000 ?  If I had invested £2000 and it reached £20000, I think I would cash in my investment.  I could then put £18000 in a Bank savings account and invest £2000 in more Bitcoin, to see if it performs as well as the previous investment. 

Teahfc

Have a read up on paying tax of any sort on currency trading. 

Will be surprised that little to no tax is normally applied depending on your other incomes. 

Research more but LISTEN to the few who have an idea on this forum. You will see who they are by their knowledgeable replies on other posts 👍🏻

https://www.dailyforex.com/forex-articles/2020/03/do-i-pay-tax-on-forex-trading-in-the-uk-29-march-2020/136070

tomtom256

huckster said:

Out of curiosity, with Bitcoin, is the purchaser under contract obligation to hold their investment for a set period of time, so cannot access the money until the exit date is reached? 

If there is no restriction on accessing the money, why not cash in for £20000 ?  If I had invested £2000 and it reached £20000, I think I would cash in my investment.  I could then put £18000 in a Bank savings account and invest £2000 in more Bitcoin, to see if it performs as well as the previous investment. 

You can't try and hide it then though.

[Deleted User]

two points bitcoin is still savings, any profits are tax free (thats the whole idea), and lastly If I had invested £2k and it was now worth £20k i'd be cashing it in. Its true to say that the crypto markets are volatile but less so now than they were in the early days, they have seen their values increased due to the decline in the dollar, and it's rumoured that paypal will soon be accepting them as payment which will see perhaps another boost.

[Deleted User]

Teahfc said:

Have a read up on paying tax of any sort on currency trading. 

Will be surprised that little to no tax is normally applied depending on your other incomes. 

Research more but LISTEN to the few who have an idea on this forum. You will see who they are by their knowledgeable replies on other posts 👍🏻

https://www.dailyforex.com/forex-articles/2020/03/do-i-pay-tax-on-forex-trading-in-the-uk-29-march-2020/136070

This link refers to forex trading and tax (foreign exchange) which is not crypto currency.