A Look into Crypto Tax Breaks | Cryptocurrency Taxes Guide
Crypto investors in the UK have the option to pay less tax on their crypto assets by benefiting from their tax breaks which include:
Tax Breaks
Personal Income Tax Allowance: Your first amount of £12,570 is considered tax-free. This is important to remember because you subtract this particular amount when calculating the Income Tax band you fall into. It could be the difference between paying 10% or 20%. However, if you are earning more than £125,140 annually, then you are not liable to receive a Personal Income Tax Allowance.
Trading and Property Allowance: If you have received an income of £1,000 from either trading or property, this is considered tax-free under the law of Trading and Property Allowance. This is applicable for both trading and property so if you have received income from both, then £2,000 will be considered tax-free.
Capital Gains Tax-Free Allowance: In the UK, you have a Capital Gains Tax-Free Allowance of £12,300 which means you will be liable to pay Capital Gains Tax on any amount made above £12,300. This means you can use any capital losses to remain within the bracket of this allowance.
Crypto Accountants and Tax Advisor UK
At Crypto Accountants, we ensure our clients obtain the maximum profit possible whilst adhering to the rules and regulations set by the HMRC.
To contact us, visit our website at: https://www.cryptoaccountants.live/