April 2023

A little while since this has had an update.

The below details have now been updated for the 2023/24 Tax Year and we will add any future important information that we think would be useful to share.

CRYPTO-CURRENCY

Firstly, as I’m sure most of you are already aware, Crypto currencies are becoming more popular as a way to invest.  We have started to see this being reflected on the bank statements of a number of our clients and HMRC have now clarified their initial stance on investments of this kind and how they are to be dealt with for Tax purposes.

For now, and this is subject to change over the coming years, Crypto investments are to be dealt with under Capital Gains rules in the same way as stocks and shares.  This means that any gains over £6,000 must be declared on your Tax Return – this also applies if you’ve had sale proceeds of over £24,000 in the tax year or have made a Capital loss on which no Capital Gains tax is payable.  However, if your proceeds from sales amount to gains over and above the annual threshold, Capital Gains Tax of 10% (basic rate band) or 20% (higher rate band) will be due on the gains over £6,000.

If we have spotted transactions from Coinbase or other sites going through your bank statements, we may have already been in touch regarding this but what we are asking is that anyone who either has been or is currently involved in Crypto Currency in any form contacts us to make us aware.  We will then let you know in more detail what we require in order to meet requirements on your Tax Return and/or if any of your recent Tax Returns need amending.

Likewise, investment in precious metals such as Gold are also treated in the same way and so again, please let us know should you have invested in this area.  The whole area remains a bit messy because at a certain point, this way of investing becomes a business rather than buying and selling stuff to make a Capital Gain.  So far there is no real guidance on this, mainly because it’s very difficult to say that if you have a hundred transactions (say) it’s a business.  That is an attitude of mind rather than a fixed number of transactions.

As with recent years, our Tax Return Information Form will be emailed out to clients.  If you would like a paper copy, please let us know and we will get one posted out to you.  Alternatively, go to the ‘Deadlines, Links & Forms’ page where you can download one in either word or pdf format.

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