Crypto tax

Hi there . I have a question about crypto . In 2024-25 after the bull market I will have a bank deposit of around 700k , so will my bank account get blocked by HMRC etc.?? I know I will have to pay taxes like 150k but I just want to get ready and know what's probably gonna happen. Regards

Hi

You would need to declare any gains you make on any disposals of cryptoassets to us, and if there is a gain on the difference between his costs and his disposal value he could potentially be liable for Capital Gains Tax.  
Please take a look at Check if you need to pay tax when you sell cryptoassets and
Cryptoassets Manual
as well as general advice on capital gains tax
Capital Gains Tax: what you pay it on, rates and allowances

Thank you

Ok thank U . But I've heard that people got their bank accounts blocked because HMRC can see large deposits into banks. Can my account be blocked as well. If so how to unblock the account. Regards

Hi Marekcrypto,
As this is a future event, you would need to wait until it has occured to see what happens. if blocked you would likely receive contact from HMRC advising you  how to resolve the matter.
Thank you.

Can I sell part of my cryptocurrency on one tax year and hold the other half another tax year to use the capital gain tax free allowance more than once?

Hi,
Yes.  Capital gains tax is calculated using the 'arising' basis.  In this case it would be the tax year in which the disposal arises.
Thank you.

I live in Portugal and left the UK three years ago. I am a registered tax payer here. Do I still need to declare my taxes to you?

Hi,
Please refer to guidance at:
Tax on your UK income if you live abroad
Thank you

On Coinbase if you stake Solana (SOL) (or any other alt-coin), any staked rewards are automatically reinvested, there is no option to receive cash/to realise a gain unless you do so manually after the rewards have been added to your account balance. As the rewards are not realised gains do you have to declare them on your tax return, or: - Are they only taxable when the asset is disposed of and a gain is realised - Or, are they double taxed? Once when they are received AND then again when the asset is disposed of?

How it works is once you get the staking reward you have to class it as income so liable for income tax. Then when you sell, if it's market value is more than when you got it then it is liable to capital gains tax. For example say you earn £100 in tokens as staking rewards. That £100 immediately becomes liable for income tax. Then when you sell it - if you sell for £100 or less no further action is needed. However, anything above £100 would be seen as a capital gain and so capital gains tax may be due. It is kind of unfair as everything you make over £100 is seen as a capital gains. However, if you sell for under £100 you cannot claims a Capital Gains loss. HMRC guidance is very poor in this matter and you can easily get confused.

Hi
It is only when you dispose of the asset that any gain/loss is realised.

Hello. I would like to ask a question concerning the tax declaration for the period of 2024/2025. I purchased cryptocurrencies in November 2024, and my profit has since reached around £400. Do I need to report anything to HMRC this year? I have not made any withdrawals of my earnings.

Hi Cryptokid,
No you do notneed to report anything to HMRC this year.
Thank you.

 

Hi, I purchased a variety of coins in 2020, they subsequently all crashed in value, although staked etc. Now they are going up in value and I hope to sell in the coming months for profit. I made no gains in the interveneing 3 and a half years should I have filed tax returns each year? Or only once the assets are disposed off to report any capital gains Tax due. Also would the rate be the current CGT rate or the rate when purchased? Thanks

Guidance on cryptoasset taxation is available online at Cryptoassets - GOV.UK (www.gov.uk), which also includes link to our more detailed guidance and link to a short video explaining how cryptoassets transactions are taxed for individuals.
Individuals holding cryptoassets as a personal investment would generally be subject to Capital Gains Tax on the gains they make when disposing of the asset. Disposal can include, for example, selling cryptoasset for money, swapping one type of cryptoasset for another, using cryptoassets to pay for goods or services, or giving cryptoassets away. Please note that cryptoasset services providers, including cryptoasset exchanges, are not required to collect Capital Gains Tax from their users on behalf of HMRC.
Individuals would generally be subject to Income Tax and National Insurance Contributions on cryptoassets which they received from other means, for example, from their employer as a form of non-cash payment for their employment.
Individuals may also be liable to pay Income Tax on income generated from cryptoasset-related activities, such as mining and staking rewards.
Please see the guidance for further details.
The tax treatment of cryptoassets can be a complex area, and you may wish to consider obtaining professional advice.