UK Budget Update for Bitcoin Holders.
HODL = No CGT: No tax if you don’t sell; disposal triggers CGT.
CGT rates are up: Selling bitcoin now incurs 18% for the basic rate (it was 10%) and 24% for the higher rate (it was 20%).
Thanks recap.io for the summary!
#UKBudget #Bitcoin
In other words, the government want us Brits to HODL.
And if you do SPEDN, buy back within 30-days to avoid a CGT event if above the threshold.
Is the capvgains tax lower for stocks?
No. In the UK it’s the same rates “on the profits” from stocks and shares too, unless they are held in a stocks and shares ISA, which is tax-free.
Simple reminder. You have a £3,000 yearly CGT allowance (used to be £12,300 🙄). You only pay CGT on any profit if you sell your Bitcoin.
A very basic example:
You buy 1 Bitcoin at £50,000. Sell it all at £55,000. A profit of £5,000.
Subtract the CGT allowance of £3,000 from this profit and you pay CGT (18% or 24%) on £2,000.
