Capital Gains Tax - Gifting

[matwils]

I need to sell some bitcoin bought for £10,000 five years ago and which is now worth £50,000. Bitcoin gains are treated as foreign currency by HMRC and subject to Capital Gains Tax.

I read https://www.taxinsider.co.uk/378-How_to ... fting.html which described how gifting could be used transfer the capital gain to someone else.

After reading the article I wondered about gifting one fifth of my bitcoin to my dad at a cost of £2,000 (i.e. the amount I originally paid for that portion) and he could then sell them at their current market value of £10,000, hence making a capital gain of £8,000. The gain would be less than his annual CGT allowance hence no tax would be applicable.

Is that possible and legal? Any advice would be greatly appreciated.

Matt

[maths]

Your gift would itself precipitate a CGT charge on your part.

But, yes, you could gift to father.

[maths]

Bit missing from above post.

The gift to father is deemed to be made at market value on which you CGT liability is based.

[Feedback]

Gift to your father on 5th April
Sell the rest on 6th April