[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 54 KB, 680x754, pringles cat.jpg [View same] [iqdb] [saucenao] [google]
50040259 No.50040259 [Reply] [Original]

I'm looking at starting to invest in a bit of crypto, and I'm wondering what the basic structure of tax on gains in the UK is.
Do I have to pay income tax plus capital gains tax, or is it just one of the two?
I know it gets more complicated than this but it would be good to know this so I'm in a good place to start researching more.

>> No.50041222

>>50040259
First you must pay national insurance on everything at 13.25% which is the UK version of health insurance.

Next you must pay income tax depending on your bracket. This is 0% up to £12,570, then 20% up to £56,000, then 40% up to £100,000, and 50% after that.
For every £2 over £100,000 you earn all of those brackets are reduced by £1 until the first one doesn't exist. So if you earn £125,140 you have to pay 20% minimum income tax.

Then there is capital gains. This is 20% and 28% on property on everything over £12,300.

>> No.50041247

Oh and I forgot to mention if you have a student loan that is repaid in a form of income tax. I believe it is 9% for everything over £27,288.

>> No.50041539

>>50040259
100% tax for her majesty

>> No.50041600

>>50041222
>>50041247
Kek Iove the UK. I wake up every morning and think of the smiles on the faces of all the dole bums.

>> No.50041850

>>50040259
As long as you're not trading every day it's probably just cgt. But read the docs.

>> No.50041898

>>50041247
>Student loans are repaid in the form of a 10% tax on income over 27k
That's incredible
as a burger I'm incredibly jealous

>> No.50041919

>>50040259
Everything >>50041222
said is on the money, except for paying NI on CGT, but that might be just me reading it wrong. Not enough coffee yet.
For a country that swears it wants to be a fintech/crypto hub, we have the most bullshit taxation.

>> No.50041954

>>50041600
Checked.
You know, I'd mind this idea less if it actually happened. Instead, they are often mindless and incredibly entitled, not remotely recognising where the fuck it all comes from.
>>50041222
Also checked. Defo not enough coffee.

>> No.50042005

>>50041919
Corporations don't pay tax though

>> No.50042017

Unless he's day trading that is all irrelevant. Investing = cgt only.

>> No.50042627

>>50042005
Well, they do, but it is corporation tax. You also have to pay CGT on any capital gains made on assets owned and redeemed via the company.
Not slating it. Using a company can be a tax efficient vehicle for lots of things, but it has its own set of circus hoops for you to jump through.

>> No.50042686

>>50041222

For investment gains it's just capital gains no? I don't think people pay income tax for that.

>> No.50042714

>>50041222
So what your saying is that I could be a crypto millionaire but if I cash out I won't be able to afford a Freddo?

>> No.50042733

>>50042714
be a paper millionaire and use all sorts of funky loopholes to do shit but earning over 50k in this country is a waste of time (being top bennie claimant is toptier)

>> No.50042758

Just stay off KYC'd exchanges and buy shitcoins on a DEX. HMRC will never know and have nowhere near the manpower to sort it.

If you trade on KYC exchanges, the exchange will dob you in to keep themselves compliant so they will know.

>> No.50042872

I don't worry about it because I'll likely never have enough skin in the game to worry about cashing out over the £12.5k allowance each year.

>> No.50042922

>>50040259
>I'm looking at starting to invest in a bit of crypto, and I'm wondering what the basic structure of tax on gains in the UK is.
>Do I have to pay income tax plus capital gains tax, or is it just one of the two?
Well it depends on the era of the monarch at the moment it is platinum that implies a high rate of taxation and an increase in public execution! Of course we have not see than yet, the executions as least but nonetheless the seizure power of her majesties customs can be applied to crypto and as a British subject you have no rights whatsoever. I hope that is all clear now. I personally feel very lucky to live in a monarchy