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Where Taxpayers and Advisers Meet

Moving abroad and crypto question

AngelaRA
Posts:1
Joined:Wed Nov 10, 2021 8:54 am
Moving abroad and crypto question

Postby AngelaRA » Wed Nov 10, 2021 9:01 am

If I permanently move abroad to a country with no CGT - then can I sell my crypto without paying capital gains tax on the first day I move abroad?

Or do I have to wait 5 years to avoid the UK Capital Gains Tax?

Also - I bought the Crypto when I was overseas - am I right in thinking that the 'location of the crypto' is where it was purchased?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Moving abroad and crypto question

Postby AGoodman » Wed Nov 10, 2021 4:17 pm

It depends - you do not necessarily become non-resident on the day you leave the country. You would need to look at the split year rules:

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3#split-years

If these rules don't apply to you then you will need to wait until the following tax year - i.e. 6 April.

The five year rule is that a temporary non-resident - somebody who is non-resident for less than 5 full years - is liable for capital gains tax on disposals they made while they were abroad. Accordingly, you can make disposals as soon as you become non-resident but you have to ensure that you stay non-resident for 5 entire years (tax years I think).

HMRC take the view that crypto tokens are located where the owner is located. Other views differ. This hasn't been tested in the courts but should not make any difference to you unless you are domiciled outside the UK (domicile being a very different concept to residence).


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