Nice summary and very succinct, but bear in mind what you’ve made an assumption that Capital Gains Tax will be applied to “ trading crypto assets “. This is not as clear cut as you have made out. There is a very grey area whether Income Tax or Capital Gains tax will be applied to your losses or gains.
Quote - “ only in exceptional circumstances would HMRC expect individuals to buy and sell crypto assets with such frequency, level of organisation and sophistication that the activity amounts to a financial trade in itself”
These factors are extremely ambiguous and are constantly under review with HMRC. How do we define frequency of trades? 10/day, 10/week , 10/month . Many crypto traders may do this as a business and if at any point the HMRC decides that the “frequency” level is high enough then Income Tax will apply.
I’m only pointing this out and I’d like to hear your thoughts/ views . As I said you’ve done a great job and I’m sure HMRC are being deliberately ambiguous with this .
I'm going to update my post. I'll add images and extra info about HMRC.
Hi,
Thank you so much for an in-depth information regarding tax. I really want to fully understand as this is new to me and don't want to make a mistake.
For the tax year - What is defined by? do i pick the dates or it's simply from 1st Jan to 31 dec? or april to april?
It's HMRC who define the tax year. They're from April 6th - April 5th. Don't forget self assessment tax return deadlines are January 31st