Declaring Crypto gains for tax return?
Discussion
After being stuck in for years, I managed to sell my BTC (E-toro) for a bit of profit back in March.
What exact information am I going to need for my tax return? I'm checking my Etoro account and I can't seem to find anything like an annual statement etc.
I know vaguely what ££ I had in there and what profit I took out, but I'm thinking I need more robust info?
What exact information am I going to need for my tax return? I'm checking my Etoro account and I can't seem to find anything like an annual statement etc.
I know vaguely what ££ I had in there and what profit I took out, but I'm thinking I need more robust info?
simon_harris said:
Last time I looked at this (when there was still a chance of making an actual profit for me) you didn't need to declare anything over £13k of profit. If you are declaring you juts do it through the SA process as far as I understand it.
Anything OVER £13k profit? I think I made about £6,500-£7k.....Sorry, not sure what "SA process" is....?
simon_harris said:
yes the allowance is basically £13k and SA if the Self assessment process with HMRC
Sorry if I'm being dumb, but you're saying you don't declare anything over £13k? So I need to declare my £6.5k....Gotcha, SA = Self Assessment. So many acronyms these days, the obvious ones sometimes pass me by!
UTH said:
Sorry if I'm being dumb, but you're saying you don't declare anything over £13k? So I need to declare my £6.5k....
Gotcha, SA = Self Assessment. So many acronyms these days, the obvious ones sometimes pass me by!
He meant over, not under.Gotcha, SA = Self Assessment. So many acronyms these days, the obvious ones sometimes pass me by!
In this tax year you a liable for anything over 3k. In the last tax year anything of 6k.
But that's all capital gains, not just one transaction.
UTH said:
simon_harris said:
yes the allowance is basically £13k and SA if the Self assessment process with HMRC
Sorry if I'm being dumb, but you're saying you don't declare anything over £13k? So I need to declare my £6.5k....Gotcha, SA = Self Assessment. So many acronyms these days, the obvious ones sometimes pass me by!
For the tax year ending April 24 your allowance as such was £6k.
If you had any other gains ( or losses ) these would also need to be considered and possibly reported but as it stands you are already over your allowance so some additional tax will be due on that £500.
TownIdiot said:
UTH said:
Sorry if I'm being dumb, but you're saying you don't declare anything over £13k? So I need to declare my £6.5k....
Gotcha, SA = Self Assessment. So many acronyms these days, the obvious ones sometimes pass me by!
He meant over, not under.Gotcha, SA = Self Assessment. So many acronyms these days, the obvious ones sometimes pass me by!
In this tax year you a liable for anything over 3k. In the last tax year anything of 6k.
But that's all capital gains, not just one transaction.
TownIdiot said:
UTH said:
Well from memroy I had about £11k sitting there for maybe 3 years, I took it all out in one go in March, profit around £6,500.....
So depending on other gains on losses you pay CGT on 500.I have managed to find an account statement section of Etoro, so maybe that's what I need.
Capital Gains Tax is a tax on any gains made on the disposal of an asset.
The basic calculation is to deduct the original purchase cost of the investment the from sales proceeds on disposal of the investment.
Each tax year, a person receives an annual Capital Gains Tax Allownce. For many years this allowance was quite generous. However for the year ended 5 April 2024 the allowance was reduced to just £6,000. For the current tax year 2024/25) it is only £3,000.
If you are a basic rate tax payer you pay Capital Gains Tax at 10%. If you are a higher rate tax payer the rate is 10%.
Bear in mind, a Capital Gain can pitch a person into the higher rate tax bands.
The basic calculation is to deduct the original purchase cost of the investment the from sales proceeds on disposal of the investment.
Each tax year, a person receives an annual Capital Gains Tax Allownce. For many years this allowance was quite generous. However for the year ended 5 April 2024 the allowance was reduced to just £6,000. For the current tax year 2024/25) it is only £3,000.
If you are a basic rate tax payer you pay Capital Gains Tax at 10%. If you are a higher rate tax payer the rate is 10%.
Bear in mind, a Capital Gain can pitch a person into the higher rate tax bands.
E-Toro will produce a tax statement for you - https://www.etoro.com/customer-service/tax-report/
The FAQ at the bottom for the UK tells you what bits go in which boxes.
The FAQ at the bottom for the UK tells you what bits go in which boxes.
simon_harris said:
yes the allowance is basically £13k and SA if the Self assessment process with HMRC
You're thinking of Income Tax allowance (£12,570 for the current FY) not CGT allowance. Crystallising a profit on an investment - ie you sell it - is a capital gain, as per Eric's post.
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