TAX ON CRYPTO PROFITS IN THE UK

I've been in the crypto game for a bit over 2 years and haven't pulled any profits into my bank yet, but I'm thinking about doing it soon. Here's the thing, though. The tax year in the UK runs from April 6th to April 5th, and we have to declare by January 31st. So, now that January 31st is behind us, if I decide to cash out some profits before April 6th, when do I actually need to pay the tax?

I'm not living in the UK but after a bit of research, I found a guide on how to start there is a guide that I found on Google directly from the UK government you can maybe use it to start how can you pay the taxes and how to calculate them. Check this link below. - https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets Also, check this link https://www.unbiased.co.uk/discover/personal-finance/savings-investing/uk-cryptocurrency-tax-guide-everything-you-need-to-know

Thanks but yeah I have seen these links , I am just unsure regarding my initial question. I am not definitely going to take some profits in the next few months but if we start pumping then I might do and just want to know when I will need to pay tax by.

Are you forgetting again that you have already asked similar questions? In case you haven't already received answers that satisfy you, wouldn't it be best to find a tax advisor who would then advise you when it comes to taxes? Paying tax in UK after bull run?

That is a different question , I am talking about selling between now and Bitcoin halving in April. How and when do I pay taxes if I was to do so as its confusing.

Anyone? my porftolio hit +50% profit for first time yesterday and thinking of taking some profits and withdrawing to my bank for first time. Does it make any difference if I withdraw to bank now or wait till new tax year which starts 6th April?

My thinking is that if you sell before the start of the new tax period, then you must also pay the tax for the period in which you sold. I don't know why there is so much confusion about taxes, and I find it even more strange that you don't go to your tax office and ask all the questions that interest you. The UK is not some third world country where there are no clear rules about what interests you. All those who are not from the UK can only guess what and how you should act when it comes to tax. If I were you, I would start with this link -> https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

It is not clear at all. This is first time I have had to do my own taxes so want to be 100% sure. UK tax year is 6th April - 5th April but we have to submit by 31st January. Just not sure if its ok to take out some profits now or just wait till after 6th April so then I at least know I will have till 31st January to submit.

The UK Government website has a bunch of entries related to crypto on their website, which should probably be read throughout thoroughly: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual Additionally, in relation to the calendar, there is an entry on the site that depicts how to deal with the dates related to the fiscal year (note that the example fiscal year is not up-to-date with the running cycle): https://www.gov.uk/self-assessment-tax-returns/deadlines The above link depicts that (abstracting the Year for a general approach): -   The fiscal year goes from 6 April Year X to 5 April Year X+1. -   Paper return for the above period should be submitted by 31/10/Year X+1 -   Online return for the above period should be submitted by 31/01/Year X+2 In practical terms, for the ongoing fiscal cycle it should go as: -   The fiscal year goes from 6 April 2023 to 5 April 2024. -   Paper return for the above period should be submitted by 31/10/2024. -   Online return for the above period should be submitted by 31/01/2025. In other words, if you sell now, you’ll need to see to the associated taxes for this fiscal cycle by 31/10/2024 or 31/01/2025 as per the above. If you sell after the fifth of April 2024, the dates shift forward a year. Bear in mind that you may need to consider capital gains and/or income tax: https://cointracking.info/crypto-taxes-uk/ Important Note: Any advice read here should be contrasted with multiple sources (the more official the better), and not be taken for granted. I am good willed, but not versed on the matter in the UK.

Hi DdmrDdmr, So if I don't sell any until after 6th April this year, I don't have to submit this until 31st January 2026? Doesn't seem right, sounds like a big gap having until 2026.

It does indeed seem odd, but considering that the following cycle would run from 6 April 2024 to 5 April 2025 it seems so, despite it looking weird (as per the example provided by the UK Gov website). That’s why I’d contrast the info with other articles and sources to see if they state the same (the link provided above to cointracking’s site does also exemplify along the same lines). It’s not odd in other countries to pay takes on a given operation a year and a half down the road (i.e. if the operation took place at the beginning of the taxation cycle + 6 months or so until tax report deadline).

haha Dear OP you do not need to make one more thread to ask the same question as Lucius has mentioned above one of your thread on the same topic like this. Paying tax in UK after bull run?. if you really feel you still not getting the desired answer you want you can ask there in the previous thread rather than creating a new one. Besides all that, UK taxes are really too high where people have to pay a lot of taxes. About a month ago i was discussing the same thing with one of my friend that Uk is crypto friendly then is replied me but the taxes and fees are too high haha. But I think if we come out of the crypto space other taxes are also too high like property taxes, Your Yearly earnings Taxes. haha I have seen some people who do not store their any earning records online and they do not even use bank services so that they can avoid taxes. They just work for physical money and do not receive any online payment.

Question on paying tax on crypto gains in general. Let’s say for example you invest £10,000 over a few years does that mean I can withdraw £10,000 back to my bank without paying any tax as that is the amount I invested? With the bull run starting to heat up I haven’t withdrawn any money to my bank yet since I started investing so just want to know if I have to pay taxes straight away or if I only start paying once I have withdrawn the total amount I have invested?

Tax will be counted annually in every financial year which has start and end days defined by your government and Tax Authority. If the day you cash out is exceed the previous tax report day of a previous financial year, you can report your cash out to a next financial year. Some guides above, and there is another guide on Internet for you. Crypto Tax UK: Expert Guide 2025.

https://www.dlnews.com/articles/regulation/uk-crypto-firms-told-report-user-transaction-risk-penalties/ "The United Kingdom is starting to make more room for crypto, but it wants receipts for every user, trade, and transfer. Beginning on the first day of 2026, cryptoasset firms operating in the country will be required to collect and report detailed user and transaction data under a new framework being rolled out by the UK tax authority. The change stems from the UK’s adoption of the Cryptoasset Reporting Framework — a global standard designed to crack down on tax evasion and bring crypto transparency in line with banking. Platforms will need to identify every user and record their legal details, addresses, and tax identification numbers. They’ll also be required to document every transaction involving UK users or those in other CARF-participating countries, including the value, asset type, quantity, and nature of the transfer. The requirements even extend to foreign firms serving UK clients, and penalties of up to £300 per user will apply for incorrect or incomplete reporting."

Yeah I still dont fully understand it all but I found the below site which seems pretty good for giving us in the UK a rough idea at least of the amount of tax we will have to pay next year depending on our profits from crypto. https://taxscouts.com/calculator/crypto-tax-calculator/

https://www.reformparty.uk/cryptobill The Reform UK party has introduced a bill that could turn the country into a world leader in the blockchain industry: AI: "10% tax on profits from cryptocurrencies. A 2-year regulatory sandbox for startups and banks. A ban on banks refusing clients for using crypto. A state fund in Bitcoin is the official BTC reserve. Paying taxes in BTC and ETH. No more than 90 days to develop new rules for crypto."

I was likely going to vote Reform anyway but hearing Nigel Farage speak about all this last few days I definitely will be now. It’s time for a change in the UK.