?
The capital gains allowance is £12k.
Yes, for property it seems over £6K is tax but crypto is a property and like shares you get the £12K allowance. It’s a pure minefield.
(this is why mega expensive (over £200K) watches are used a value stores for some in the UK, no tax)
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Looks like it depends if the utility token is classed as a e-money or not.
utility tokens will fall outside the FCA’s control, except for when they can be defined as electronic money and fall with a new category of e-money tokens.
What exactly then are classed as e-money tokens? Clear as mud.
Another reason why DeFi space is growing exponentially and why I harp on way too much about trying if at all possible to make everything including any bridge onto (and off if two way) the SN as decentralised as possible. Decentralisation sets us free, proven to make all these onerous gotcha jurisdiction rules just go away.
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Hopefully we won’t have to play this game with SNT 
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Yes it’s a mess and a dangerous mess. They talk of our tokens like we sell them, which we don’t. Then if they appear on an exchange it’s seen as e-money or requiring regulation, which means … well who really knows? It seems the Safe network would be sued, but nobody owns that, however these folk don’t do logic. Steps will be taken though, they will have to at this rate.
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Cryptocurrency assets have their own rules which are treated like shares (with £12k CGT annual allowance) rather than personal property, so I don’t see any relevance of £6k and the section you referenced, see instead:
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Yes that’s what I mean. HMRC have cryptocurrency as a property, at least that is what they told me in writing. However personal property has other tax. So they say not money or a currency, but in the FCA papers, they say it might be e-money and need to be regulated (even tokens deemed as utility).
They (HMRC) also stated to me in my case bitcoins don’t actually exist (which we know), so if you hold a wallet abroad like omni servers and your cash there, as they say, it does not exist then it’s not able to be held outside the UK. Then they tax you on a non-existant property, even for zero income dealings (which is ok when we know that’s the rule)
It’s just very very messy and FCA and HMRC are taking different positions on crypto being money or property so no matter which way we turn right now there is danger.
[edit Here is the link (DO NO CLICK IT) to the FCA page companies should go for advice https://innovate.fca.org.uk/innovation-hub/request-our-support Firefox will not open it
Firefox detected a potential security threat and did not continue to innovate.fca.org.uk. If you visit this site, attackers could try to steal information like your passwords, emails, or credit card details.
You could not make this stuff up!]
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I’m not surprised they don’t accept crypto is held abroad because it’s in the ether. It makes more sense to treat it as a UK asset for tax purposes, when obviously the law wasn’t drafted for cryptocurrency.
The main stupidity is taxing gains that never existed (due to crypto to crypto trading and transfers) rather than deferring tax until disposal to non cryptocurrency assets or fiat.
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I agree, it was their 2014 paper that suggested they may be held abroad. Good there is an answer and in the manual from your link that is clear now. However also from that manual (emphasis mine)
There is no disposal if the individual retains beneficial ownership of the tokens throughout the transaction, for example moving tokens between public addresses that the individual beneficially controls (commonly described as moving tokens between wallets).
Using a mixer, tumbler or similar service so that the individual receives the same type of tokens that they put into the transaction also is not a disposal. **However, it will constitute a disposal if the individual puts token A into the transaction and receives token B in return.**
And that’s an issue
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Seems clear that conversion from MAID even to an equivalent, but different token, could be treated as a disposal in UK, and given the attitude so far I would expect that to be the case.
Still that means both erc20 and SNT.
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This is regarding MAID to SN conversion? If you just import your private key then there shouldn’t be an issue though? Then nothing has moved.
But then the MAID needs to be burned doesn’t it? Unsure how that would work.
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They are fine with moving, it’s exchange that they are interested in.
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What about gifting or “air drops”?
In UK gifts I think are fine, airdrops would be taxable as income but i could be wrong, so nobody should take this as correct: check!
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Those are worse, it’s income tax, so higher level.
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Mental thing, gifts are also a problem How do I gift money without being taxed? | money.co.uk (the system is designed against sharing wealth) The whole thing really needs a major overhaul
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The dirvine and happybeing tax advice service, coming soon: don’t trust it!
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Solid modo! I’ll be your first unwitting customer.
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Although not in card form, I think the closest comparison is probably Casascius coins, the guy making those had a really rough time when the authorities realised he was selling them.
He was in the USA.
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What is an equivalent, but different token though?
Many blockchains are upgrading regularly with hard forks. In some cases, in case of disagreement, a blockchain will split and two tokens live on, but in most cases only the upgraded blockchain lives on and the old version dies. Is that really different?
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