Cryptocurrency and Benefits

Bitcointrader

If one invested a few hundred quid into Cryptocurrency and that particular Cryptocurrency rockets in price to the extent that it is now worth several hundred thousand pounds, what would the correct way to let the benefits team know and would it mean immediate ceasing of all benefits.
Also, can you invest the amount earned into purchasing a property before paying capital gains tax or does capital gains tax have to be paid immediately.

poppy12345

Savings of more £16,000 means you're not entitled to any means tested benefits such as Universal Credit, IR ESA, JSA, Income Support, Housing benefit and Council tax reduction, regardless of where they are. Although Council tax reduction sometimes has a savings limit of £6,000, it depends on the local Authority rules because they are all different.

Can't answer your other question though.

Charles_Foxtrot

Well no clue, but if I made several hundred thousand pounds based on a few hundred quid, I’d sell at least half of that crypto, bank it, and let the other half ride, 

then obviously you’d have over six figures in your bank account, and well depends on what benefits you get, but obviously anything means tested you wouldn’t qualify. So you call the office and tell them that you now have whatever amount of money (let’s assume > £100k) in cash and no longer qualify for whatever you were getting.

not sure if this is even a real question lol. Makes me wish I bought doge coin last year. 

MX5huggy

CGT liability is created as soon as you change one asset to another so even if you used the crypto to buy the house you would owe the CGT. https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets

horse99

Answer for the Original Poster
Be careful informing the Benefits Office or you could be accused of fraud.  You should notify within 21 days for Council Tax benefit and 28 days for Housing Benefit.
If it's been say 4 months and no more you might get away wiith it if you say you forgot due to other circumstances but if it's been maybe 18 months since your digital tiddlywinks exceeded the threshold then you may be in trouble and wind up in the Crown Court or a formal caution.
You will have to pay back all benefits received since the date you went over the capital limit.
Talk if over with your most trusted family member if not done so already.
Good luck anyway

TELLIT01

horse99 said:

Answer for the Original Poster
Be careful informing the Benefits Office or you could be accused of fraud.  You should notify within 21 days for Council Tax benefit and 28 days for Housing Benefit.
If it's been say 4 months and no more you might get away wiith it if you say you forgot due to other circumstances but if it's been maybe 18 months since your digital tiddlywinks exceeded the threshold then you may be in trouble and wind up in the Crown Court or a formal caution.
You will have to pay back all benefits received since the date you went over the capital limit.
Talk if over with your most trusted family member if not done so already.
Good luck anyway

To clarify - are you saying the OP shouldn't inform the 'Benefits Office' and therefore continue to perpetrate a fraud?  If the OP does inform the various departments the perception of fraud will be removed, or at least greatly reduced.  Yes they will have to repay any overpayment, but they clearly have the funds to do that.

horse99

Of course the OP should report his situation A.S.A.P but it would be helpful if the OP took another week to draft a letter of excuses, together with a sincere apology.  But certainly it needs to be reported and can't be left to fester. 

jimpwarsop

horse99 said:

Of course the OP should report his situation A.S.A.P but it would be helpful if the OP took another week to draft a letter of excuses, together with a sincere apology.  But certainly it needs to be reported and can't be left to fester. 

you should look at the very first word of the very first post.

IF.   And I suggest it is a very big IF.

greyteam1959

Looks like another one post wonder.

Robbie64

^

and the fourth thread about bitcoin / cryptocurrency and benefits in the past month or so. All by posters who vanished as soon as they arrived.

Spoonie_Turtle

Robbie64 said:

^

and the fourth thread about bitcoin / cryptocurrency and benefits in the past month or so. All by posters who vanished as soon as they arrived.

Can't quite help wondering if they're all the same person hoping to somehow get a different answer though.