Lloydsnakelifts

How it works is once you get the staking reward you have to class it as income so liable for income tax. Then when you sell, if it's market value is more than when you got it then it is liable to capital gains tax. For example say you earn £100 in tokens as staking rewards. That £100 immediately becomes liable for income tax. Then when you sell it - if you sell for £100 or less no further action is needed. However, anything above £100 would be seen as a capital gain and so capital gains tax may be due. It is kind of unfair as everything you make over £100 is seen as a capital gains. However, if you sell for under £100 you cannot claims a Capital Gains loss. HMRC guidance is very poor in this matter and you can easily get confused.

I usually get a letter/email from HMRC by September stating how much tax I owe on the Interest I got from my bank accounts. It is now December and I have not got the amount in tax I owe. I have spoken to some friends and they are in the same situation. It is now December and many of us want to know how much tax we owe HMRC on our Interest. People budget and need to plan in advance. When will we get the amount of tax owed on interest? Also, do not say the high interest rates mean more people have to pay and so there is a backlog. This has been known for over 12 months and HMRC should have anticipated this.

Thank you very much for confirming that. Just to confirm my understanding, if I have crypto (or shares) and the business replaces them with new crypto (or shares) there is no disposable or acquisition for capital gains purposes. All that happens in that the new crypto (or shares) replace the old ones and my purchase price was whatever I paid when I purchased the old crypto (or shares). I have to say that is a very fair approach as I did not sell and the change was forced onto me by the company. Please can you confirm if my understanding of the guidance is correct.

I have a Crypto and the project team are changing their token. They want to increase the number of tokens. This new token will replace the existing token (so old token is being replaced with a new token). For every one of the current token they are giving 10 of the new token. At the moment I have 1000 tokens. These token will be sent to the project team and they will send me 10,000 of the new tokens - these are brand new token and have been created to replace the existing token. The old token will then be made obsolete and replaced with the new token. How do I deal with this in terms of my records for capitals gains. Is this a disposal and acquisition and I have to pay for capital gains (profit or loss on the difference). Or is simply the new token replace the new tokens. I don't want to get HMRC knocking on my door so would welcome some guidance.