Cryptocurrencies

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Larry78
Larry78 Posts: 5 Forumite
in Cutting tax
Hi

First time poster asking for some advice :j

I bought some crypto coins a while ago which have appreciated in value- currently stored on exchanges and digital wallets. I'm now planning to withdraw these back to my bank account. I'd like to use some to clear my debts. My question is- what tax is liable and how do I arrange this and can I offset someplace of this against my debts?

Thanks :beer:

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  • antrobus
    antrobus Posts: 17,386 Forumite
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    Larry78 wrote: »
    ... My question is- what tax is liable and how do I arrange this ....

    Capital Gains Tax. You have an allowance of £11,300.
    Larry78 wrote: »
    ...
    and can I offset someplace of this against my debts?

    No.
  • Larry78
    Larry78 Posts: 5 Forumite
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    How and when do I pay capital gains tax? No idea how this works.
  • Larry78
    Larry78 Posts: 5 Forumite
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    Am I already liable through holding these coins?
  • antrobus
    antrobus Posts: 17,386 Forumite
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    Larry78 wrote: »
    How and when do I pay capital gains tax? No idea how this works.

    You contact HMRC.

    How much did you make on the cryptos?
  • Linton
    Linton Posts: 17,173 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
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    Larry78 wrote: »
    Am I already liable through holding these coins?

    You are liable for tax when you sell them for a profit, not until then.
  • Larry78
    Larry78 Posts: 5 Forumite
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    High 5 digits. How do HMRC find out? Say I withdraw 50K from an exchange today, what happens? Also got no idea how t calculate my liability as bought bits and pieces over years. What is the rate?

    Thanks
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
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    I suggest you read this for starters. If it doesn't go into enough detail I expect some of out tax experts will be able to post links to the relevant manual(s).

    https://www.gov.uk/capital-gains-tax

    With a gain as large as you might have it could be worth consulting an acountant.
  • Larry78
    Larry78 Posts: 5 Forumite
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    Thanks, yes good idea.
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