Postby roundfroy » Thu Mar 21, 2024 1:28 am
Thanks for all your replies. Appreciated.
HMRC don't care about ignorance that's correct. They couldn't give a toss about anybody and are perfectly fine with shafting people who are ignorant. It's unfortunate that trading assets is a bad idea without seeking tax advice. Until people are told they should seek Tax advice, nobody would seek tax advice. I mean, why ? Seriously ? I can tell you now that most people who are heavily into the Crypto space, DO NOT cash out if they make half a million. Because it makes zero sense. Along with people in Government, HMRC have been spouting that crypto is gambling. And have been really spelling that out to people and trying to make them look like goons for using crypto. But now that it's going mainstream, apparently it's not gambling. How convenient since that Gambling wasn't subject to CGT (correct me if I"m wrong).
People who are savvy on Crypto, are heavily into ETH based Altcoins because there is a massive Ecosystem of projects that allow developers to be very clever with tokens and tokenomics. I mean in the sense that because ETH based tokens are programable, Layer 2 platforms designed for scaling and therefor low cost transactions, are allowing all sorts of categories such as identity, defi, privacy, AI, RWA, insurance, gaming, DEX, perpetuals, derivatives, depin, governance. The list goes on and on and on. HMRC are ignorant themselves as to what they are trying to make average people do. I mean, creating a wallet on a computer and connecting that wallet to a plethora of platforms has become child's play. No signing up processes or KYC anymore. That's history.
Everybody and their grandma can do it. Most web browsers have built in wallets by default now allowing it. And this being the case, hundreds of transactions get created and swapped repeatedly not necessarily to create a gain but simply to be able to use a particular platform. For example, a platform may require you to deposit USDC and not ETH to make trades. Thus triggering a supposed CGT event. Yet HMRC seem to think that taking a note of token exchanges ought to fit neatly into their expectations of tax obligations. How on earth is average Jo or even experts meant to dig through and decipher hundreds maybe thousands of onchain transactions on the Blockchain ? It's pure insanity. Life has moved on since dinosaur fiat transactions where you could sit there with a spreadsheet and make a note of all your transactions.
The biggest joke of all is that HMRC have no chance whatsoever of tracing the majority of so called CGT events on the Blockchain. Already there are thousands of tokens, hundreds of different blockchains, millions and millions of wallet addresses. Thousands of Nodes around the world to validate those transactions, and zero chance of shutting it down. This is just the start. Projects are developing privacy solutions. And now AI is being incorporated into projects on the Blockchains. Has HMRC any idea of how exponential this is gonna be ? They still think they are thing. People all around the world are being banked where previously governments, banks and their IMF buddies, blocked citizens from having the ability to exchange value unless meeting a certain critera. HMRC, governments, all of them are literally going to lose the ability to control the flow of value around the globe. And therefor the collection of TAX. The ignorance of those in the HMRC and Government is jaw dropping. But that's ok. I'm ok with that. Because younger generations get it. And they will use Crypto and think nothing whatsoever about TAX returns and form filling. The UK Government should get with it today or fall behind badly in favour of countries that embrace Crypto. Because there is a massive opportunity that's being missed. Income TAX should be scrapped altogether and instead collect TAX on goods at POS. The HMRC criminalises people for simply being ignorant to their form filling rules. I still can't believe that HMRC had the effing balls to include a crypto to crypto CGT event. Many people have done what they thought was correct in simply cashing out and paying TAX on the gains made. No person would think they had to pay TAX before cashing out. It's BS. I mentioned that HMRC criminalise people. That might be the wrong word. Perhaps I should say bury people. Can somebody in Government actually give an F please. Seriously, can somebody do the right thing for people. For once. Just once.
Thats my rant for the evening. I will now continue my research on Crypto friendly countries.