Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 17 Nov 2021 13:43:02 GMT by khalo
Due to the technical challenges, a few years ago I purchased crypto for my parents under my own Coinbase account. This was ultimately transferred out to a unique wallet exclusively for them with none of my own activity. I don't want to consider this a 'gift' and pay tax on it. I want them to pay capital gains on it when they sell. How should this be handled? Do I simply omit these transactions from my personal tax calculations?
Posted Thu, 18 Nov 2021 11:46:56 GMT by HMRC Admin 29

There is no disposal if the individual retains beneficial ownership of the crypto throughout the transaction, for example, moving tokens between public addresses that the individual beneficially controls.This is commonly described as moving tokens between wallets.

Ultimately, whether there is a disposal of beneficial interest is very much a question of fact.

CG11700P - Introduction and computation: chargeable assets: introduction: contents

Thank you. 
Posted Thu, 18 Nov 2021 12:12:19 GMT by khalo
Thanks, that's quite technical language so just want to verify I understand. You're saying it doesn't matter that they purchased the crypto using my account. And that I was the custodial for several months before transferring the asset to their own wallet once they had created it. Only they are liable for any taxes here, As such, I will owe no tax on this for eventual transfer out of my wallet to theirs. Is this generally a correct understanding?
Posted Mon, 22 Nov 2021 13:44:42 GMT by HMRC Admin 2

If you are the beneficial owner of the asset then you would be liable for any gain.

You would need to determine if there has been a transfer of this benefical interest using the guidance posted. 

Thank you.

You must be signed in to post in this forum.