With crypto prices as low as they currently are, you may have been considering gifting it this festive season. However, are you aware of the potential tax implications of doing so?
Although receiving cryptocurrency is not a taxable event, gifting it potentially is! Gifting cryptocurrency to friends and family can be considered a disposal of a chargeable asset and you could potentially be liable for Capital Gains Tax.
Here's how you calculate the gains in this instance:
Capital gains on your gift
= Market value at time of gift - Original price when you bought it
Fortunately, this doesn’t apply to gifts to spouses or civil partners, as gifts to them are tax-free.
Are you sure you're covered?
As demonstrated by the above, it’s really easy to unknowingly trigger taxable events when dealing with cryptocurrency. This is one of the main reasons Blocktax exists - we want you to avoid nasty surprises.
To this end we've been hard at work this year crafting a course on tax designed to be the ideal companion for any UK-based investor, trader, or miner of cryptocurrency. It's not for everyone - we know many of you have already done a significant amount of research or attended one of our previous events (thank you!). It won’t necessarily negate the need for professional advice either, depending on your situation.
However, when it comes to taxes, everyone has different gaps in knowledge that they're unaware of. Unless you’re working in the field, it’s unusual to have studied tax systematically. We start from first principles - assuming no knowledge of the subject, and build up from there, giving you a solid foundation for all your future crypto pursuits. With over 90 slides of original content and diagrams, we also demonstrate example calculations and hold your hand through Self Assessment. All those little random questions we get from our readers? The answers are all in there.
So if you’re new to crypto and find yourself with twenty browser tabs open trying to find the answer to some random tax question, take our course! If you had to google “chargeable asset”, take our course! If dealing with your taxes still gives you the heebie-jeebies, take our course! If you’re looking for an awesome Christmas present for that newly-crypto-obsessed friend of yours, buy him/her our course!
(We suffered through HMRC manual footnotes so you don’t have to!)
Attendees of our previous events have often commented on how much information they need to absorb at once - so we’ve created a course you will be able to access and complete at your own convenience and pace.
All purchases have a no-nonsense refund policy - just contact us within 30 days of receipt to tell us why this didn’t work for you as promised.
If you are a miner, this course can be considered a tax-deductible expense.
Who is this not for?
This course is for individuals - not companies. We will not address Corporation Tax, although we will touch on the difference between running a business as a sole trader and operating a limited company.
If you are already proficient in filing for Self Assessment and really just need more niche advice - eg. how to deal with particular coins, masternodes or very specific residency issues, you might prefer to consult a tax professional directly instead.