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bigduckontax
bigduckontax, Accountant
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I am trading crypto currencies on the internet. I have made

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I am trading crypto currencies on the internet. I have made substantial gains and would like to know the legal tax avoidance methods i can use.1. What legal ways can i reduce tax in the UK?2. Is it possible to withdraw my earnings off-shore (i.e virgin islands, hong-kong), as technically my business or work has no relation to the UK, other than the fact i reside here.

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

Putting earnings offshore is a great tax avoidance measure, Unfortunately, to take advantage of such facilities you have to leave the UK and reside in the tax haven.

Trading cryptocurrencies are taxed under the UK's Capital Gains Tax (CGT) regime at 10% and 20% depending on your income including the gain in the tax year of disposal. However, if your activities are frequent HMRC may classify them as trading income and charge your profits to ***** (IT). Losses can, of course, be offset against gains.

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

Customer: replied 4 months ago.
Thanks for the swift reply.As you mentioned, i would need to reside in the tax haven. Would that be for the period i work, or would i essentially have to become a resident there for HMRC to acknowledge it?

The latter; you would advise your departure to HMRC by means of a Form P85.

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