• M Ahmad

Checklist for Crypto Investors

Updated: Jul 2, 2021

If you have invested in Crypto and are worried about whether you need to pay tax, answer the following 4 questions to determine if you need professional advice.

  1. Have you sold Crypto assets between 6th April 2020 to 5th April 2021 and made a profit after selling above £12,300? Example you bought £10K of crypto and sold this for £12K you will have made £2K profit.

  2. Did the total value of All crypto assets sold in that year total more than £49,200? Eg. You sold £50,500 worth of Crypto in total regardless of how much you paid for them.

  3. Have you sold Crypto Assets before 6th April 2020? If so, have you disclosed these to HMRC already?

  4. Have you been involved in ICO’s, hardforks, airdrops, peer to peer lending, margin trading, staking, gaming or mining?

If you answered NO to ALL of the above questions it is safe to say you don't need to do anything! Yes, that's correct you are good to continue confidently trading and enjoying your profits.

Profits earned from Crypto currency trading are taxed under capital gains tax rules. For the year ended 6th April 2021 you can earn up to £12,300 without incurring tax as this is the yearly exempt amount.

This questionnaire should not be used as official tax advice and should only be used as a guide and for information purposes only. Individuals personal circumstances including employment earnings, other capital assets sold in the year could result in further disclosures and tax being applicable. Please get in touch with our team to discuss your personal position.

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