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My name is Lyanne and I’m the managing director of Wilds. Happy new year to you all! Are you going to make 2020 one of the best years? What new year’s resolutions have you made? We’d love to hear what they are and to put a plan in place to help you to achieve them. Come in for a coffee and a chat and get the year off to a good start. Contact us now.

 

Cyrptocurrency for Individuals

While there are no specific rules for cryptocurrency regarding taxes, here are some procedures to follow.
You do not have to pay tax when purchasing cryptocurrency or when it increases in value. In addition to that there is no tax to pay if you trade one cryptocurrency for another. However, you must pay tax on the ‘profit’ made when you sell your cryptocurrency back to GBP.
Buying and selling of cryptocurrency can be recognised as trading activity or a hobby. If it is classed as trading, any profits from selling cryptocurrency will be subject to income tax.
HMRC have 9 ‘badges of trade’ which can help deciding if you’re doing it as a hobby or trading activity, however it is important to note that HMRC urge not to use them as a checklist.
1. profit-seeking motive;
2. the number of transactions;
3. the nature of the asset;
4. existence of similar trading transactions or interests;
5. changes to the asset;
6. the way the sale was carried out;
7. the source of finance;
8. interval of time between purchase and sale; and
9. method of acquisition.

If you are buying and selling of cryptocurrency and it is considered a hobby, you may be liable to capital gains tax (also known as CGT) on the profit made.

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