We were approached by Mr R who had recently started investing in cryptocurrency.
Mr R was employed full-time, and his crypto activities were speculative to start with, but he was interested to see how he may be able to progress things over the next few years.
Mr R had invested small sums in crypto throughout the last 18 months but was due to receive a substantial bonus from his job later that month and planned to use that to invest further in cryptocurrency.
Mr R receives large bonus’ every quarter and going forwards planned to invest all of those in crypto, and so it was highly likely that by the end of the year he will have exceeded the annual capital gains tax exemption of £12,300.
Mr R he was keen to ensure that he was approaching things correctly from a tax point of view.
Based on Mr R’s objectives and intentions with regards to his crypto investments, we determined that a company would likely be the most tax efficient way for him to hold his cryptoassets.
We advised Mr R on the tax treatment of his upcoming investments and gave him advice on how and when to register his activities with HMRC.
