Barry Winters

As things stand, so far, not only did you NOT answer my questions in the section where I was more specific and gave a hypothetical scenario. But you pointed me to legislations where the context is:- "The Economic Crime and Corporate Transparency Bill (“the Bill”) aims to strengthen the UK’s fight against economic crime. It will also support efforts to tackle terrorist financing." Is things stand, based on our your responses, I am none the wiser and therefor cannot make assumptions about whether or not I should pay TAX. But also don't even see any legal basis for it. I will therefor base my TAX calculations as income tax only. I have no other options or means to do this.

It says:- Exchange your tokens for a different type of cryptoasset Please can you provide details of legislation that says when exchanging crypto currency tokens for a different type of crypt asset constitute a taxable event. Crypto Assets are not currency or legal tender. Only when they are sold for GBP should there be a taxable event. Property, Gold, Stocks, Shares, they are all subject to tax when selling to currency (legal tender). I have not heard of anything were swapping one asset for another constitutes a taxable event. I question the legality of this. I cannot see how it is possible for every single person who uses crypto currency to keep records of every event where one crypto currency swapped for another. It's completely unrealistic and unethical. For example, chlidren who play Blockchain Games will be constantly swapping crypto back and forth as part of that game or ecosystem. It's unrealistic to expect people to declare that, and especially keep records. It's not going to happen. That is just one example. This requirements means that many many people would be bankrupt if they were to go back over years and years of on-chain transactions. The reason for this is that many tokens will have gone to zero without people even knowing. Yet had a taxable event in the past. Probably 99% of individuals have no idea if this tax event. Almost all people assume tax is paid when selling to GBP. I would like to see the legislation on this please.

Hi, I will try to be more specific because I have read the guidance already but want to be sure I understand this correctly. And I am not understanding what the guidance means. Hypothetically, suppose I purchase £1000 worth of BTC on a crypto Exchange. The BTC is then sent to a private wallet. Over a 9 month period, the BTC increases in value to £2000. I make the decision to swap the BTC on a DEX to ETH (still worth £2000) directly, because I might for example, feel there is further upside potential. And at this stage I do not want to cash out to GBP. So instead, I keep the crypto where it is for another 2 years. In the above example, are HMRC asking people to pay TAX on the increased value between the first BTC value (when it was purchased) and ETH value (when BTC was exchanged to ETH) before the start of the following TAX year ? To be absolutely clear, HMRC are expecting people to pay TAX on Crypto assets where no actual real world gain or benefit was realised. Literally never sold, where sold literally means selling for legal tender (GBP) ?

I would appreciate an answer to this. Thank You.

From what I have read in your documents on the HMRC website, an on-chain crypto currency token, swapped for a different crypto currency token, is classified as disposing of an asset. And therefor, subject to capital gains tax. Does this TAX have to be paid despite not converting the final transaction to legal currency ? As in, just left on-chain. Because it is my understanding that TAX is only due when cashed out to actual real world currency (legal tender). Otherwise, this would be the equivalent of purchasing any kind of asset, only have to pay tax on the increased value of that asset every tax year. Despite never selling it for real money.