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UK XRP Hodlers


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45 minutes ago, faz said:

gatehub did say they were adding gbp this year but not heard anything for a long while .

I really don't like gatehub. They were the first exchange I got verified on but also applied for bitstamp at the same time and then got verified by them a day or so later.

And I just prefer bitstamp platform over gatehub. 

Each to their own I suppose 

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2 minutes ago, jamierichardsonmcfc said:

Have any of you dabbled in any sub penny coins? Or do any of you like the look of any? 

Only in the past and that was to increase my xrp holdings in the end.

How about you?

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1 minute ago, Let_her_Ripple said:

I agree.

I'm still curious if the gains made are under £11,500 do we need to declare anything at all??

if you are working you just carry on as normal until you decide to cash out , i took a year off once and done a self assesment online 

i just put in zero earnings and never had any problems . i did ring them and explained the situation before hand and thats what hey told me to do .

 

4 minutes ago, Let_her_Ripple said:

I agree.

I'm still curious if the gains made are under £11,500 do we need to declare anything at all??

 

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6 minutes ago, brettmgs said:

I really don't like gatehub. They were the first exchange I got verified on but also applied for bitstamp at the same time and then got verified by them a day or so later.

And I just prefer bitstamp platform over gatehub. 

Each to their own I suppose 

yes, probably best to be on both for when you cash out sometimes one or the other has better prices .

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1 hour ago, mariusthegreat said:

Im an ACCA qualified accountant and I can confirm that is correct. 

At present it is seen as a capital gains tax, but there are loop holes....

as @HenryHole stated that is one of the most common.

Question for you. I hold my Zerps on Etoro, not in a wallet. Even though they say I "own the asset" my zerps are held by them in "cold storage".

If I withdrew profit before and never transferred the Zerps into my own wallet, would I still be liable for CGT? As I see it, what I am doing is no different from gambling on a betting site. I am betting on the price going up or down.

Help greatly appreciated!

 

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9 minutes ago, EWH2020 said:

Question for you. I hold my Zerps on Etoro, not in a wallet. Even though they say I "own the asset" my zerps are held by them in "cold storage".

If I withdrew profit before and never transferred the Zerps into my own wallet, would I still be liable for CGT? As I see it, what I am doing is no different from gambling on a betting site. I am betting on the price going up or down.

Help greatly appreciated!

 

I'm no financial expert but as I understand it CFD trading is exactly the same as any other stock/shares type setup... I.E. if you earn beyond a threshold which makes you liable for any personal tax (i.e.£11,500+) then you will have to file a self assessment and declare the profits.

Alternatively you can use a well versed accountant to net off any profits against 'expenses' B)

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Good Afternoon Gents,

Add another Brit to the list. I'm glad I stumbled across this as I had all my assumptions wrong.  I had assumed the first £11,300 profit is tax free and also that you can use your income tax allowance of £11,500. Then the next £22,000 was at 10% and anything in excess is 20% - trying to remember where I got that from though and can't find it. So looks like I was completely wrong...

So I did some quick research and it seems you cannot use the CGT and Income Tax allowance together (assuming you are not working and have no income). From my understanding now, you can apply £11,300 for tax free purposes, then the next £33,500 is charged at 10%. Anything over that is 20%.  Here is an online calculator that I found:

https://www.uktaxcalculators.co.uk/capital-gains-tax-calculator.php#disposalproceedshelp

To simplify things I used £2 million (as that was someone quoted earlier), as an example and put costs and initial purchase at 0.  This is what I get:

Subtracting annual exempt amount from 'Other' assets last.
You have 'other asset' gains of £1,988,700.00 after taking the annual exempt amount available.
You have 'other asset' gains of £1,988,700.00
Total gains after using available allowances/losses £1,988,700.00 (Residential: £0.00, Other: £1,988,700.00)
Applying tax bands to 'Other' assets last.
Other assets taxed at basic rate (£33,500.00@ 10%) = £3,350.00.
Other assets taxed at higher rate (£1,955,200.00@ 20%) = £391,040.00.
Other assets tax = £394,390.00

Hope this helps in our understanding...

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15 minutes ago, nomad_z said:

Good Afternoon Gents,

Add another Brit to the list. I'm glad I stumbled across this as I had all my assumptions wrong.  I had assumed the first £11,300 profit is tax free and also that you can use your income tax allowance of £11,500. Then the next £22,000 was at 10% and anything in excess is 20% - trying to remember where I got that from though and can't find it. So looks like I was completely wrong...

So I did some quick research and it seems you cannot use the CGT and Income Tax allowance together (assuming you are not working and have no income). From my understanding now, you can apply £11,300 for tax free purposes, then the next £33,500 is charged at 10%. Anything over that is 20%.  Here is an online calculator that I found:

https://www.uktaxcalculators.co.uk/capital-gains-tax-calculator.php#disposalproceedshelp

To simplify things I used £2 million (as that was someone quoted earlier), as an example and put costs and initial purchase at 0.  This is what I get:

Subtracting annual exempt amount from 'Other' assets last.
You have 'other asset' gains of £1,988,700.00 after taking the annual exempt amount available.
You have 'other asset' gains of £1,988,700.00
Total gains after using available allowances/losses £1,988,700.00 (Residential: £0.00, Other: £1,988,700.00)
Applying tax bands to 'Other' assets last.
Other assets taxed at basic rate (£33,500.00@ 10%) = £3,350.00.
Other assets taxed at higher rate (£1,955,200.00@ 20%) = £391,040.00.
Other assets tax = £394,390.00

Hope this helps in our understanding...

Spot on mate just as I said earlier today just around £400k.

So we can say for easy working out that a fifth of your total cash out is tax - 2mil ÷ 5 = 400k

Then let your accountant bring that 400k down with some magic lol

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Small long term hodler. Found out about ripple after reading about the bitcoin boom and everything about it seemed to have a real structure and stability - it just made the most sense to me in an area that i know very little.

So just a punt that might make my life a little bit easier in the future - 46 now,  so hoping i can make enough to buy a little place in the sun :) if it makes $10 id be happy but looking at the $100 plus mark.

Oh and good luck in the premership @brettmgs 

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As we are on the subject of tax, I have a quick question. If we make a donation to charity from the money received from sale of XRP, is that money still taxable?

Oh and my wife just pointed out on my post, I started with, "Good afternoon Gents", when I should have said, "Good afternoon Ladies and Gentlemen". She said I was being to presumptuous.

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2 hours ago, EWH2020 said:

Question for you. I hold my Zerps on Etoro, not in a wallet. Even though they say I "own the asset" my zerps are held by them in "cold storage".

If I withdrew profit before and never transferred the Zerps into my own wallet, would I still be liable for CGT? As I see it, what I am doing is no different from gambling on a betting site. I am betting on the price going up or down.

Help greatly appreciated!

 

If you own an asset and it appreciates in value you are liable under CGT yes but only if your profit from your asset is above £11,300 and you have used a UK account (this is lower if you were a business / to incorporate a business)

By purchasing an XRP unit it is recognised as an asset regardless of where it is held, the money you paid out for is a stake on both profit and loss of that asset.

EDIT:

 

To be clear you only pay tax when you realise your gains, that is when you cash out. So until profit is realised you pay no tax.

Edited by Guest
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