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My wife came up with a potential strategy (UK) for MSTR.

Put spare money into an ISA in MSTR. Any gains under £20k per year are cap gains free. If you get some good gains. Just before the end of the tax year. Take profits and put into a SIPP (personal pension) in MSTR. This would help off set your personal tax owed as pension contribitions are tax efficient. If over the year MSTR has done well (we think so) then you can use the tax free gains to reduce your income tax. If this is allowed then my wife is one clever lady. Someone tell me if this can be done. #cheatcode 🫡

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Discussion

Jamesy227 1y ago

It isn't even that complicated. All gains in a stocks and shares isa are tax free so no cap gains to pay if you sell your MSTR shares in an isa, regardless of the gain

Jamesy227 1y ago

If you then want to sell some and transfer the gain into a sipp to get the 20% tax relief (or highest band of income tax you pay), then yes, that is a tax efficient flex. Although then have the restriction of when you can access your SIPP

The Bitcoin Chef 1y ago

Of course but as she wants to have a SIPP anyway. Rather than paying direct into the SIPP this could be a way to boost gains and be tax efficient. Ie just delay the amount into the SIPP until the end of the year and hopefully get gains in the isa that are bigger than what would have gone in originally. Then also you are not tying all capital up in a SIPP but having some left in isa to use some other time. I guess it only works if the isa goes up a lot but with MSTR this seems possible.

mike 1y ago

My IRL pal nostr:npub1cvq7p3zwtqym3xhxuj5cc2xa3hdk2zjnx2p64epjs06tmzx3zzpq5ut995 talks about this kind of thing all the time.

What do you think Joss?

Joss 1y ago

So Jamie is correct. All gains arising in UK SIPPs and ISAs are tax free. I've loaded up on MSTR in both and it's going well.

There is an alternative which is to buy Bitcoin in company pension called a SSAS but you need a company and HMRC approval to do that.

Joss 1y ago

*James