Buy BTC for a family member from EU / UK tax

[Martin_K]

my mom decided to invest some in BTC but doesn’t understand how to do it.

She lives in Bulgaria, (EU) She wants to send me money to my UK bank account, which I then send to my Crypto.com wallet to buy BTC and hold it for her. So far this is not a taxable event, correct?

My plan was to hold the BTC until I see her and make a local crypto.com wallet account for her as an EU citizen. When she has her account, I can then send her the BTC so she can manage it from her own account and be liable to the Bulgarian tax regulation.

Can someone please advise me if I will be liable for any taxes for doing the above? Just trying to find the best way for my family to profit from the dip, without affecting my own tax liabilities.

thanks

[crypto_small]

Any transfer to someone else who isn’t your spouse or a registered charity is a capital gains taxable event.

You have a 12k total capital gains allowance per year, so you’ll only pay gains tax on total gainsover this.

[Martin_K]

thank you! On the HMRC website, it says: * give away your tokens to another person (unless it’s a gift to your spouse or civil partner)

what if I explicitly state that those tokens are not mine?
I receive say 10k to purchase BTC since my mother doesn’t understand how to do it, hold it while her own crypto wallet account is set up and then simply send her back the equivalent of the 10k she initially sent me as BTC?
Why would that be taxed (counted towards my allowance) if it was never my possession?
It will be taxed when it gets to her account (according to EU domestic tax regulations)

[Throttlestop]

So far as I can see, there are no UK tax consequences of any kind re the transaction you describe. There is no gift involved, nor any change in the beneficial ownership of the value your mother temporarily provides to you. It is advisable to keep a written record of it and any relevant transactions, such as her Bulgarian and your UK bank statements etc. Your Koinly transactions will need to be tagged appropriately. Bulgarian tax law will apply to your mother’s acquisition – if Bulgaria is the same as UK law in relevant respects, her capital gains tax cost basis would be the value in Bulgarian currency of your Crypto.com BTC purchase transaction. She might be able to set some transaction fees off against any future capital gain.