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  • Is interest on a loan to buy crypto currency tax deductible

    I took out a loan to buy some crypto currency and made a gain of around 5,000 when I sold which I believe will be taxed as a capital gain (nb I have some other ordinary capital gains from shares sales that take me over 12,300). The interest I paid on the loan to buy the cryptocurrency came to about £800 .. can I claim this interest against the £5000 gain?
  • Cash gift received - is it a gift or income

    I have been supporting a friend for the last couple of years who owned a small Limited Company. I have been supporting him with ideas, suggestions, advice and help on production and on general business issues and problems; he has paid me a small commission based on sales for this help. He has recently sold the Company and wants to pay me a one off payment to say thank you for my help. I was not expecting this so it has come as a nice surprise. The payment is from him personally and not from the old Limited Company. I have tried to research whether I can just view this as a simple gift or whether I should treat it as income and pay income tax? I have come across BIM41805 an HMRC guidance note and some legal cases which have cropped up while looking including Simpson v John Reynolds, Murray v Goodhews and Walker v Carnaby and these case seem the closest to my situation and suggest the gift can be treated as a gift and not as income. It seems quite tricky to decide though because there appear to be other cases which take a different view. My normal day job as as a self employed engineering consultant which is a full time business so my help to my friend tended to be outside of normal hours. Does HMRC have any suggestions or guidance Thank you