CGT on Cryptocurrency

startrim

Have I worked out the CGT I need to pay correctly?

Cost of buying £12,200
Sold £88,300
Profit £76,100
Allowance £12,300
Taxable £63,800
10% £5,000
20% £2,760
Total CGT £7,760

yorkiechick

Not quite, it also depends on what other earnings you have.

If you have no other income, the first £37,500 of the gain is taxed at 10% = £3,750
the rest, £26,300 is taxed at 20% = £5,260 making total CGT due of £9,010

startrim

Thank-you.
I am newly self employed, My gross income for this tax year will be roughly 10k. No other income.

So, even though there is a £12,300 allowance CGT is worked out from zero to 50k, giving the £,3750, the rest at 20%.

Jeremy535897

Your gross income will be covered by the personal allowance, so no income tax due. You can't use personal allowance against gains, so that is why £37,700 (for 2021/22) is taxed at 10% and the balance (£63,800-£37,700 = £26,100) is taxed at 20%, totalling £8,990. See https://www.gov.uk/capital-gains-tax/rates

startrim

Understood, many thanks Jeremy.

Lionheart99

Splendid explanation I was just going to ask this exact question w3ell done yorkie chick and jeremey