Hi,
we have had some cryptocurrency for a couple of years now, we have been sitting on the investment and it has now done OK..
What is the tax situation on such long term investments if we decided to cash them in?
Thanks
Simon
Tax on long term cryptocurreny investments
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11342
Don't know the answer specifically and I might have got it wrong - been a while - but any capital gains is taxable, even houses (with some limits on time, tapers off).
As far as I am aware there are no capital gains allowances. If you both are still resident in the UK for tax, then you should sell them there to use your individual allowances or if you can split gains over years until you become tax resident here.
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SimonDavidson wrote:What is the tax situation on such long term investments if we decided to cash them in?
You need to consult with a qualified and bonded accountant or tax attorney (maybe one with international experience). Failure to get this right can result in fines from the Hungarian tax authority. Processing this via a bonded accountant or licensed tax expert can limit your liability. Simply taking advice from people at a forum will not. Hire a competent accountant or tax expert. Money well spent.
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What if you withdraw from a crypto ATM?
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rip_kirby wrote:What if you withdraw from a crypto ATM?
Crypto currencies are treated different in each country in the EU, and rules change all the time. In some countries they are treated as currency, in others they are treated as investments. So you might need to pay any variety of exchange tax, income tax, capital gains, profit tax, wealth tax, etc on your crypto currency investment. Where you "cash out" that currency into another currency may not then be relevant, as you may still owe any number of taxes simply having the currency, selling it or converting it.
And a "crypto" ATM will record who you are when you do a transaction. So the tax man will know. "Crypto" only is about the currency, not "crypto" as in you are not anonymous since in the EU, EU currency exchange banking rules may apply.
Which is why I said to contact an expert. The laws in Hungary change frequently, and you need to stay current.
The only good news is any crypto currency transaction in the EU is VAT exempt.
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