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Making the most of your bitcoin (by maxing your tax)

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Crypto enthusiasts will know that just because you didn’t know about the tax liable on cryptocurrency gains doesn’t mean you don’t have to pay it. Ignorance is no defence against the taxman.

But there are ways of reducing the tax you have to pay, and they are all entirely legal.

The main tax a holder of bitcoin is most likely to pay is on any gains made when selling the asset. This is called Capital Gains Tax (CGT). Like any investment, if you don’t do anything to make the value increase, it’s seen as something of a windfall – and the government wants a share of the action.

USE ETORO’S CRYPTO TAX CALCULATOR

You are liable for tax on the gains you make selling cryptoassets for cold hard cash, exchanging cryptoassets for a different type (i.e. bitcoin for ripple), using cryptoassets to pay for goods or services or giving them away to someone else.

Importantly, you can give the cryptos to a spouse or civil partner and not be liable for gains… but you are just handing over the liability to them to sort out.

Also, don’t think you can just offload them onto a charity, as HMRC can take a view that you are doing it just to get out of paying what you owe.

READ ETORO’S CRYPTOASSET TAX REPORT

However, CGT only kicks in after you’ve made £12,000 in one tax year across all the assets you have sold or disposed of – this includes houses, fine wines, expensive watches etc. This is the allowance you are given annually by Her Majesty’s Revenue and Customs.

There are ways you can offset the tax, too.

Firstly, you can knock off the amount in pound sterling that you originally paid for the asset – in this case, crypto. So, if you paid £100 for a wallet now worth £1,000, you are only liable for £900. You can offset transaction fees paid before the transaction is added to a blockchain and the cost of any advertising you did to find the cryptos initially or when you decided to sell.

Any professional costs you incurred drawing up a contract for when you bought (or even took ownership for free) and disposal of the cryptoassets can also be set against gains.

And happily, the cost of working out how much you can offset against gains is also something that can be counted as one of these allowances.

FIND OUT IF YOU OWE CRYPTO TAX

It is up to you as the owner and seller of the assets to make HMRC aware of your activity, just as it is with any other kind of tax. Make sure you are up to speed with your allowances – and make the most of them.

To help you understand how this new tax regime might affect you, eToro has created a crypto tax calculator, infographic and crypto tax guide.

You can also listen to eToro, HMRC and ICAEW explore the cryptoasset landscape, the future of crypto, the tax levy and dispel common misconceptions in our webinar here.

LISTEN HERE

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk CFDs work, and whether you can afford to take the high risk of losing your money.

Applies to UK taxpayers only.

The information above does not constitute financial advice, always speak to a tax professional to ensure it is right for your specific circumstances.

eToro does not represent any government entity. You should check with a tax professional or HMRC if you are paying the right amount of tax.

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eToroX adds Dash, USDC, USDT and 5 new stablecoins

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Institutional traders now have access to more instruments on regulated crypto exchange

12 November 2019:  eToroX, the blockchain subsidiary of global investment platform eToro, has added five new fiat stablecoins, a new cryptoasset, two further established stablecoins and a crypto-commodity pair, signalling its rapid growth, having only launched only six months ago. There are now 26 tradable assets available on the exchange.

The new assets announced today are:

  • Turkish Lira (TRYX), Polish Zloty (PLNX), South African Rand (ZARX), Hong Kong Dollar (HKDX), and Singapore Dollar (SGDX)
  • Peer-to-peer cryptoasset, Dash
  • Circle’s USDC and Tether’s USDT stablecoins
  • GOLDX/BTC pairing

eToroX is committed to supporting the needs of algo traders seeking to diversify into cryptoassets on a secure and regulated platform. These new additions also demonstrate eToroX’s focus on Asian markets.

Doron Rosenblum, Managing Director of eToroX commented, “We see the addition of USDC and USDT as a way for eToroX to further meet the needs of professional and institutional algo traders, particularly in the Asian markets. Adding five new stablecoins, plus the addition of the Dash cryptoasset, demonstrates our ongoing commitment to bridge the gap between the world of…

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MATCH GOING PREMIER LEAGUE FANS WILL SPEND £1.3BN TO SUPPORT THEIR CLUB THIS SEASON, UP 31% SINCE 2014/15

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– Gary Neville welcomes research into fans’ spend –

Premier League match-going fans will have to shell out £1.3 billion this season to follow their teams – as increases in the price of home tickets, TV subscriptions and merchandise hit their wallets. 

The eToro Fan Financial Statement, research carried out by multi-asset investment platform eToro in association with KPMG Football Benchmark, provides a comprehensive study into the financial commitment UK football fans make to support their Premier League clubs and which clubs offer the best value.

As one of the biggest sponsors of the Premier League, eToro have been promoting their crypto offering through their six club partnerships this season. Currently, they are running promotions on match day LED boards and media backdrops, helping raise awareness of cryptoassets to a global audience.

Key findings of the report include:

  • Premier League match-going fans will spend an estimated £1.3bn this season
  • Increase of 31% since 2014/15, and 6.5% since last season
  • Overall cost of tickets for a ‘dedicated fan’ risen only 1% since 2014/15
  • Biggest increases per match-going fan are TV subscriptions (40%), merchandise (21%), home tickets (14%) and…
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eToro signals commitment to growth with acquisition of Delta

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– Second deal of 2019 supports expansion as eToro eyes further acquisitions –

Global multi-asset investment platform eToro has today announced the acquisition of Delta for an undisclosed amount. Delta helps investors make better decisions regarding their crypto investments by providing tools such as portfolio tracking and pricing data. 

Commenting on the news, Yoni Assia, Co-founder and CEO of eToro, said: “We are excited to announce that Delta will become part of the eToro Group. This is our second acquisition this year and reflects our commitment to continued growth and innovation. When we started eToro our goal was to disrupt the world of trading. We wanted to change the way people think about trading and investing, ultimately reducing dependency on traditional financial institutions and make trading and investing more transparent and fun. This mission remains our guiding light and we will continue to evolve both organically and by acquisition in order to bring our customers the very best experience.”

Delta is a crypto portfolio tracker app with over 6,000 cryptoassets available from more than 180 exchanges. It provides investors with a range of tools to track and analyze their crypto portfolios. To date, Delta has been downloaded by over 1.5 million users and has hundreds of thousands of active monthly…

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