Bitcoin and Child Benefit Charge

22225

Hello, my husband has just had a promotion which takes him just over 50k. However earlier in the year he made some money on crypto and gave me 10k to look after for him. I know for calculating the child benefit charge you can take off pension, which is taken off in his payslip, but for the adjusted net income, do we have to add the 10k profit on to his salary when working out his adjusted net salary? Are there any solutions to avoiding the charge apart from increasing his pension contributions from his employer or can I just give him back the 10k and tell him to put it in a SIPP and take off (I think) the grossed up amount (£12500???)
I am on  a low wage so going forward should he just put any crypto gains into my name???
Sorry if any of this is bait-y to anyone, I'm just trying to work out what to do.

masonic

Whatever gain he made on his crypto would be treated as a capital gain at the point he cashes in the crypto, so wouldn't be relevant to the adjusted net income calculation. If his capital gain was above his annual CGT allowance, then that would have separate tax implications for him in the tax year he sold the crypto (if it was in fact sold).

eskbanker

Yes, CGT: https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets

No need to engage in any deception if the gain was below the annual CGT threshold though....

22225

It was 10k so below the cgt threshold but he cashed it out and gave it to me for safe keeping. In the adjusted net income guidance it says you have to declare dividends so surely I have to declare the 10k? X

eskbanker

22225 said:

It was 10k so below the cgt threshold but he cashed it out and gave it to me for safe keeping. In the adjusted net income guidance it says you have to declare dividends so surely I have to declare the 10k? X

What does a profit/gain on sale have to do with dividends?

masonic

Capital gains and dividends are two entirely separate things. Capital gains are not included in adjusted net income and belong to the person who owned the assets at the point they were sold.

22225

I asked him was the 10k the profit or the initial investment plus profit but he says he doesnt even know anymore.

Cus

Why can't he keep it safe?

22225

Ok thank you that's very reassuring. I thought dividends shares cryptoinvestments were all the same thing

22225

Thank you everyone

22225

Cus said:

Why can't he keep it safe?

Self control etc