High Clarity Accountants

TAX TIP OF THE WEEK – Made some good gains from Cryptocurrencies in the last few years? Great but have you considered the tax position when you eventually come to sell them?

Crypto is classified as an asset which means when you come to sell them you will be subject to capital gains tax. However, with a bit of year-end planning, this can be minimised.

In years gone by you can use your annual CGT allowance to effectively sell assets such as shares and buy them back at the same price.

However, a few years ago HMRC cottoned on to this and introduced so called Bed & Breakfasting rules. This means you had to wait for a period of 30 days before you could buy back the asset.

The problem with is that given the volatility of crypto, the price could go up so you would be out of pocket.

One way around this is to have your spouse buy the crypto on the same day that you sell them. They then gift them back to you after a period of 30 days.

This little trick will mean you increase the base cost of the investment when you eventually sell them saving you CGT.

Hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr

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