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bigduckontax, Accountant
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My question is in regards to cryptocurrencies. I registered

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Hello !
My question is in regards ***** *****
I registered with an exchange and added my UK bank account in April this year and made purchases of Bitcoin and others.
In May I started to tell my friends and family about Cyrpto and the unrealized gains I had made in just over a month. As they aren't technology savvy and the prices were increasing quickly at the time I told them to transfer money into my bank account from thier UK bank accounts and I would buy the coins on their behalf.
Since then from reading forums on Reddit I've came to realise that this may not have been such a good idea in regards ***** ***** !
My question is have a unknowingly broken any laws ? Should have applied for some type of license to buy these coins on behalf of my friends and family approx 5 people all UK nationals if such a license exists ?
Is it ok to send them their coins when they are reaady to sell them back into GBP via thier own exchange accounts that they now all have into thier own bank accounts ?
Would they still be entitled to the £11,300 CGT relief each or would they all have to share my £11,300 as I was the individual that bought the coins originally ?
I hope I have worded this clearly enough
Thank you very much in advance

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You have not broken any laws. Trading in Bricoins is perfecty legal, however any profits you make are subject to Income Tax (IT) at your marginal rate. Capital Gains Tax (CGT) does not come into the equation at all. You must declare your bricoin trading profits to HMRC as self employment income at the conclusion of each tax year [5 April]. You register for self employment with this form:

Trading on behalf of your friends was perhaps not the best idea. The way to escape from this is to transfer the bitcoins to their own accounts and leave them to declare their respective profits to HMRC.

I do hope that you have found my reply of assistance.

Customer: replied 9 months ago.
Hello Keith thanks for the prompt reply!I know that buying Bitcoins is legal my worry was more to do with if I was ever audited by the Tax man would buying coins on behalf of my friends and family be frowned upon in regards ***** ***** Your Customer and Anti Money Laundering regulations ?My purchases of Bitcoins are a long term investment I'm not day trading at all and dont plan to convert back into FIAT for years so I won't actually be realising any gains this tax year. I'm currently in full time employment and have been paying tax and NI for over 20 yearsI'm an indivual I don't have a bitcoin businesses these were one of purchasesAccording to the below document from HMRC any gains made on cryptoared taxed as CGT forgive my ignorance

Unfortunately, another example of confusing guidance issued by HMRC from which they can make the cat jump in whichever way they find convenient ie the one that yields the most revenue. However, if you are not day trading I assume that you can rely on it and ultimately make a gain which will come under the CGT regime. In that case you have an Annual Exempt Amount (AEA) of 11.3K to offset any gain.

I have already advised how you escape from your commitments to friend and family. An investigation by HMRC is most unlikely and, in any event, you can show that no money laundering has taken place, just simple over enthusiasm.

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