Thursday, February 25, 2021

Question on Capital Gains Tax (CGT allowance & exchange BTC to Stablecoins)

New into crypto but reading about Capital Gains Tax has made me paranoid for the future, waiting to see what the latest budget has to say on it, if I make gains below £12,300 do I have to declare these to the HMRC? I'd rather not disclose my full wallet address to HMRC, I also have no idea how to deal with the fact that exchange one Cryptocurrency into another is a taxable event, if I take profits from Bitcoin into a stable coin like Tether with the aim of rebuying Bitcoin later when the price dips is this taxable? If I'm able to time it so that I can buy back more Bitcoin than I started with and then the price massively dips will I still have to pay tax I'm so confused!! At this point I'm thinking I'll just stick to anything under £12,300 a year

EDIT - I've heard good things about 'Koinly' I think this is the name, software that helps me assess my tax liabilities, is the free version good? Are there any security concerns using the platform?


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