A few basic UK tax questions - I hope!

Tax Questions
#1

Couple of basic questions for you. Many thanks in advance.

  1. What benefit is there to this 30 day selling and then buying back in that I keep reading about?

  2. If I sell some cryptos and make a £200k profit before April 2021, and then I transition that cash into another crypto before the tax year ends, which carries over to say holding it through May/June, am I forced to pay 20% on the £200k for the 2020-2021 tax year, even though it’s reinvested and I may lose 100% of my portfolio by say June? If I have no cash left, I’m still forced to find 20% of the £200k?

  3. I use Koinly to track everything, and it seems all correct. Would you suggest I just append this output to a Self Assessment, or still safer to go through a crypto-savvy accountant to submit things?

Many thanks!

#2

Hi replemished, I am just a customer but can add some thoughts of my own. I will let someone else answer on 1). For 2) yes you would owe the tax regardless. You can rack up capital losses in the next tax year which may prove useful for offsetting gains that year or in any future year, but you can’t offset against previous years. 3) My understanding is you just submit the basic details on the tax return and then see if they ask for further details. You don’t have to give totals of what you own, just the gains. I will be interested to hear feedback from others on this.

#3

Thank you. For number 2 then, I better hope the whole bull run occurs prior to April or else that gets troublesome.

#4

Hi, regarding the questions:

  1. You are unlikely to benefit by buying/selling within 30 days due to the way capital gains are calcualted in the UK, see this: https://koinly.io/blog/calculating-crypto-taxes-uk-share-pooling/
    The 30 day bnb rule prevents tax loss harvesting.

  2. As @forest already mentioned, these sales would be taxed even if you lose your whole investment later on.

  3. You only need to submit basic details when reporting to the HMRC, if they request more data you can provide them with the capital gains calculations report as well.