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Posted Wed, 13 Mar 2024 13:32:52 GMT by Jim Fish
I read a lot about how to take advantage of both allowances and potential 10% tax rates by gifting crypto between spouses but I am unsure how that works.Lots of people talk about "gifting" but none explain what that entails when it applies to spouses. For context, we purchased crypto some time ago using joint funds and regard what we have, as we do everything else we have in our lives, as jointly held. We have never needed to declare any CGT before now. However, the crypto exchange account we use is registered in my name. So I have two questions: 1) Does the fact the exchange is in my name mean anything that has passed through it (into cold wallets) will be classed as mine alone and if not then what would be the baseline situation? 2) If that was the case, how would I go about "gifting" some of it to my wife given the status quo? Would we need to open a second exchange account (and potentially a new set of cold wallets), in her name, and transfer some assets across to that for disposal to show they were regarded as attributable to her? Really would appreciate some advice here as this is the one aspect of tax and crypto I am struggling to understand.
Posted Fri, 15 Mar 2024 10:45:41 GMT by Cncvonn
+1 I have also used 50/50 funding to buy crypto. I have the assets held on exchange in my name. Would also like to understand what documentation is required to prove ownership transfer prior to sale. Or whether any physical movement of asset to spouse account has to occur prior to sell. Many thanks
Posted Wed, 20 Mar 2024 10:03:11 GMT by HMRC Admin 25 Response
Hi Jim Fish,
With the account being in your name, you are the beneficiary of any capital gains tax on the disposal of assets within that account.
There is no Capital Gains Tax on the transfer of assets between spouses and civil partners, so you could transfer the asset to your wife prior to the disposal.
How you go about doing that is not something we can help with.
You could check withe the account provider.
Thank you. 
Posted Wed, 20 Mar 2024 14:10:56 GMT by Jim Fish
Thank you, that is at least some help (I know what I cannot do, even if I am still not entirely sure what I should). I will get her to open an account in her name, I think, to make evidencing the transfer clear.
Posted Thu, 21 Mar 2024 09:47:22 GMT by HMRC Admin 25 Response
Hi Cncvonn,
You would need to provide a declaration of trust that is signed and witnessed.
This would then need to be sent to:
HMRC, PAYE & Self Assessment BX9 1AS.
Thank you. 

 

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