I live and work in the UK. I work at the company, so my employer handles the income tax. I also own some stocks but I keep them in stocks and shares ISA, so I don't have to pay tax on them. Now let's imagine that I start trading cryptocurrencies. As far as I understand, I'll have to pay Capital Gains Tax if my total gains on selling cryptocurrencies exceed £12,300.

  • If my gains do not exceed tax free allowance, do I still need to report anything to HMRC?
  • Do I understand correctly that if I own two cryptoassets, and I sold one of them for profit of £13,000 but another one for loss of £1,000 within the same financial year, I should calculate my total gains as £13,000 - £1,000 = £12,000, and therefore I am not subject to the Capital Gains Tax?
  • When thinking about the gains on cryptocurrencies, I don't have to think about the gains on stocks that I keep within an ISA, right?

Thank you.

1 Answer 1

  1. No, you only have to do it if the assets sold are more than 4 times the allowance, but it may be worth doing for peace of mind, incase you get audited.
  2. Yes, you can deduct sold losses from the overall sold gains
  3. Correct, ISA is wrapped and is separate.
  • 1
    According to the "If your total gains are less than the tax-free allowance" section of Gov.uk's Capital Gains Tax page, you only need to report below-allowance gains if "the amount you sold the assets for was more than 4 times your allowance" and "you’re registered for Self Assessment".
    – TripeHound
    Commented Jan 4, 2021 at 22:46
  • Apologies misread the fulltime employment part. I'd probably still recommend filing and keeping a record of stuff like crypto where records down the line may be hard to get hold of in case of an audit etc.
    – Philip
    Commented Jan 5, 2021 at 9:22

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