Cryptocurrency

[TheCyclingProgrammer]

His reply:
Basically, every transaction subject to CGT is separate and based on the date of disposal.
With crypto currency, as there is no physical asset, I believe that it would be just when you make a disposal back into “normal” currency that a CGT point would be triggered.
However, I am sure the HMRC with update the rules and clarify this position as more and more people get involved in it.

I think its worth bearing in mind that this advice seems more of a practical nature rather than technically correct. There is no statutory definition of "disposal" so it simply takes its normal meaning which is to sell or give away an asset.

CGT is paid on gains *on disposal* and it makes no difference whether the asset is digital or tangible and what the consideration you receive in return is (fiat cash, another asset etc.). Exchanging one alt-coin for another is a disposal. Just the same as selling shares in return for other shares is a disposal.

HMRC might not be bothered about the small gains and losses made whilst trading until you cash out *now* but they might in the future.

[scooterscot]

It's all very true. I'll be interested to know how the authorities are going to track all those trades, let alone validate them, when decentralisation takes hold. One minute these alts don't exist, they are fairy dust, not on the elemental chart and the next they are assets. It's funny how they become real when there's tax opportunities.

Nevertheless I've no issues about tax, but if payment is not required as thus I've been advised, I'll no volunteer it.

[TheGreenBastard]

It's all very true. I'll be interested to know how the authorities are going to track all those trades, let alone validate them, when decentralisation takes hold. One minute these alts don't exist, they are fairy dust, not on the elemental chart and the next they are assets. It's funny how they become real when there's tax opportunities.

Nevertheless I've no issues about tax, but if payment is not required as thus I've been advised, I'll no volunteer it.

Problem is then you're pleading ignorance over control of your tax affairs - which can lead to misery

[SunnyInHades]

One minute these alts don't exist, they are fairy dust, not on the elemental chart and the next they are assets.

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This token will be a standard ERC20 token, meaning you’ll set a fixed amount to be created and won’t have any fancy rules. I'll also show you how to get it verified so that it's uber legit.
To buy and sell, you'll need to get your token listed on an exchange. But that's a tutorial for another day "

https://steemit.com/ethereum/@maxnac...erc20-verified

[FrontEnder]

I don't think you'd pay more tax if each individual trade is taxed anyway.

if I make start with £1000, make 10 trades @ 10% profit on each one, then cash it back to GBP I'm made a profit of £1593.74. This is the exact same as the sum of the profit on each individual trade.

This is of course assuming a static rate of GBP vs whatever coin you're trading. It would only be beneficial to HMRC if the rate at the time of the individual trades was more than the rate at the time you've cashed in back to GBP.

Just seems way more complicated for a negligible, if any increase in tax revenue.

[TheCyclingProgrammer]

I don't think you'd pay more tax if each individual trade is taxed anyway.

if I make start with £1000, make 10 trades @ 10% profit on each one, then cash it back to GBP I'm made a profit of £1593.74. This is the exact same as the sum of the profit on each individual trade.

This is of course assuming a static rate of GBP vs whatever coin you're trading. It would only be beneficial to HMRC if the rate at the time of the individual trades was more than the rate at the time you've cashed in back to GBP.

Just seems way more complicated for a negligible, if any increase in tax revenue.

It's a fair point. The other thing to consider is if you're the sort of person who is making numerous trades (i.e. you're day trading) then it may be taxable as income rather than capital gains anyway.

[ChimpMaster]

Yesterday I mentioned ETC is going to explode. So far its taken a 10% hit with the South Korea news, don't worry. It is still going to explode.

Let me tell what else is about to explode. Decred (DCR). There's a rumour, but I'm not going to add to it just yet until it becomes a little more solid. But if true it could be another Stellar like Bull run.

Anything on DCR Scoots?

[FrontEnder]

It's a fair point. The other thing to consider is if you're the sort of person who is making numerous trades (i.e. you're day trading) then it may be taxable as income rather than capital gains anyway.

Or you could argue that these are highly speculative and fall into the gambling category....

[VirtualMonkey]

Anything on DCR Scoots?

Waiting with baited breath on that one too...XLM went up over 1000% in a month
Not sure what to sell to get into it though

[stonehenge]

For CGT, you can offset losses against gains.

Suppose during a tax year you invested £1000 in coin A, then sold and bought B, then C, D, E, F and finally bought G.

Further suppose the GBP value of your F, when you sold it, was £5000.

Then surely, for tax purposes, the gain is simply £4000, irrespective of all the intermediate transactions?