I invested £10,000 in bitcoin in late 2020 and despite its fall from the peak in November, I’ve still roughly trebled my money.
My initial £10,000 investment is now worth about £30,000 and I am thinking about selling half and investing into some investment trusts I have had my eye on, to take advantage of lower prices after recent market falls.
Do I have to pay capital gains tax if I sell £15,000 of bitcoin? I haven’t made any other gains this tax year. Via email.
HMRC considers cryptocurrencies to be assets because typically they are held as investments
This is Money replies: Capital gains tax (CGT) is a tax on the profit you make when you sell an asset that has increased in value – in your case, bitcoin.
The taxman has made it clear that crypto-assets are not considered a currency but an investment and so are liable for capital gains tax.
You have to pay CGT when gains on an investment are above the annual allowance of £12,300.
If your capital gains across all assets don’t breach the allowance, you still need to report your gains in your tax return if you’re…
