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Where Taxpayers and Advisers Meet

Do I need to complete any tax paperwork if I trade below Capital Gains Tax allowance in UK?

luke444
Posts:1
Joined:Sat Mar 20, 2021 1:47 am
Do I need to complete any tax paperwork if I trade below Capital Gains Tax allowance in UK?

Postby luke444 » Sat Mar 20, 2021 2:02 am

Hi.
I recently stared a crypto trading/investing as a hobby wit a small portfolio (around £1000)
Is there any tax related paperwork or declarations I will have to fill in?
Or is there any records I should be keeping?

Ian Wright
Posts:298
Joined:Wed Aug 06, 2008 3:23 pm

Re: Do I need to complete any tax paperwork if I trade below Capital Gains Tax allowance in UK?

Postby Ian Wright » Tue Mar 23, 2021 2:39 pm

If your gains are below £12,300 and the overall proceeds are below 4 times the annual exemption which is £49,200 then you do not need to report any gains or losses to HMRC.

However, if you are making some losses then you would ideally want to claim these and if they are greater than all the gains in the year then you can carry them forward to be used against future gains.

In relation to records, I would advise you keep all the records because you may have capital gains or losses in the future and such records will be needed to prove your position. With no evidence you could end up paying more capital gains or not be able to claim your full losses.

I know the crypto exchanges are not as advanced as stock exchanges with regard to pumping out reports so I would advise you try to download your data once a month and then keep all emails of transactions. Also, keeping a mirror of your overall portfolio activity in CoinGecko or CoinMarket free portfolio systems which will record a meaningful history for you.

Regards

Ian

HODL
Ian Wright
Tax Consultant
Wright Tax Consultancy Ltd
Hampshire
UK

helg58
Posts:20
Joined:Fri Jan 16, 2009 11:24 am

Re: Do I need to complete any tax paperwork if I trade below Capital Gains Tax allowance in UK?

Postby helg58 » Mon Oct 04, 2021 3:47 pm

are there any forms, accounting packages that one can use as frequent equity trader? My broker gives excellent summary of trades, by issue, amount invested and sale proceeds, ie net loss or gain on position, but have it as pdf only


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