Just made an easy £500 on Crypto....Tax?

Flatulentoldgoat

So a couple of weeks back I dropped a few grand on Eth during a dip. It bounced back massively so I decided to take profit. I've now withdrawn it all and transferred it to my account where it's sitting pretty. Easiest cash ever, fun money for the bank holiday weekend!

What do I do now about tax? Is there anything I need to tell HMRC?

Scottex99

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Flatulentoldgoat

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

eskbanker

Flatulentoldgoat said:

So a couple of weeks back I dropped a few grand on Eth during a dip. It bounced back massively so I decided to take profit. I've now withdrawn it all and transferred it to my account where it's sitting pretty. Easiest cash ever, fun money for the bank holiday weekend!

What do I do now about tax? Is there anything I need to tell HMRC?

There isn't any specific tax on the smug or the lucky but if you make meaningful money then you may become liable for capital gains tax:

https://www.gov.uk/capital-gains-tax
https://www.gov.uk/government/publications/tax-on-cryptoassets

Thrugelmir

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Hopefully you're placing limit orders to protect your money. 

Flatulentoldgoat

Thrugelmir said:

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Hopefully you're placing limit orders to protect your money. 

Actually, stop limits are a conundrum.

I can't count the amount of times I have dipped below cost (unrealized loss) for it to immediately then bounce back into profit. Yes risky, but in effect, you're 'offering' your assets to the market at a low rate.

You can't mitigate risk entirely. Trade only what you can afford to lose.

Scottex99

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Eww BCH 

I work in Gib where there is no CGT and Portgual not far either. Quite interesting the whole CGT thing because technically it's payable at every trade not just when you came back in to fiat. But I guess ballpark you could say I started with £10k, now have £40k, I'll need to keep 20% of £40k aside.

Then good luck actually reconciling old trades, I've got thousands and thousands on about 10-15 platforms , some of them DEXs. Not that many crypto savvy accounts out there either.

They'll be like "What the F is Uniswap?"

Thrugelmir

Flatulentoldgoat said:

Thrugelmir said:

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Hopefully you're placing limit orders to protect your money. 

You can't mitigate risk entirely. Trade only what you can afford to lose.

That's what gamblers do, investors are more circumspect. 

Flatulentoldgoat

Thrugelmir said:

Flatulentoldgoat said:

Thrugelmir said:

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Hopefully you're placing limit orders to protect your money. 

You can't mitigate risk entirely. Trade only what you can afford to lose.

That's what gamblers do, investors are more circumspect. 

Ah gamblers again. This is your straw man helping you protect your ego due to the fact you lost out on Crypto and that boat basically set sail without you. Sorry for your loss(es)

Thrugelmir

Flatulentoldgoat said:

Thrugelmir said:

Flatulentoldgoat said:

Thrugelmir said:

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Hopefully you're placing limit orders to protect your money. 

You can't mitigate risk entirely. Trade only what you can afford to lose.

That's what gamblers do, investors are more circumspect. 

Ah gamblers again. This is your straw man helping you protect your ego due to the fact you lost out on Crypto and that boat basically set sail without you. Sorry for your loss(es)

Seems as if I've touched a nerve. No ego on my part. I certainly never feel the need to post and gloat about successful investments I've made. Arrogance is not a healthy trait if one is to be a successful investor. Not a competition. 

ColdIron

Flatulentoldgoat said:

Thrugelmir said:

Flatulentoldgoat said:

Thrugelmir said:

Flatulentoldgoat said:

Scottex99 said:

For that amount, I'd guess no. I never cash out so not hit the CGT stumbling block yet, haha

Haha I'm doing that with bitcoin cash and it's going good

Hopefully you're placing limit orders to protect your money. 

You can't mitigate risk entirely. Trade only what you can afford to lose.

That's what gamblers do, investors are more circumspect. 

Ah gamblers again. This is your straw man helping you protect your ego due to the fact you lost out on Crypto and that boat basically set sail without you. Sorry for your loss(es)

How is that a straw man argument? It looks like a direct rebuttal to me

However, your riposte is a simple Ad Hominem