Can I be an Investor and a Trader in the UK?

[LakeemSeyah]

Hi, does anyone know if I can be both a trader and an investor? I’m small time trading in my spare time (not as a business) on a couple of exchanges but would like to make a separate investment or move some of my BTC into cold storage or onto a separate exchange for the long term.

Is it possible to move money from my trading balance into cold storage and have the tax benefits of becoming an investor if I was to do so before my current tax year ends (Paying any tax due on what was traded of course) and then leave this BTC for the next 10 years paying tax when I sell to fiat?

Or failing that can I buy more BTC and then move this into cold storage and act as an investor/long term HODLER on this investment?

Whilst doing either of these options I would continue to trade with the rest of my crypto holdings. I hope this isn’t too confusing. Thanks very much.

[forest]

My guess is that HMRC would not treat your small time trading in your spare time as Trading, as from what I have heard it is only extreme cases that count as Trading. You would need to check with HMRC directly, but you might still be counted as Investing.

[LakeemSeyah]

Thanks John - I really appreciate your reply. I make lots of trades because I buy in pieces and try and swing my coins. I don’t trade everyday though and sometimes I won’t trade at all, only when necessary. I’m certainly not a day trader and I pay tax on multiple other sources of income. From what I have been told and from the research I have done this wouldn’t be a sophisticated enough operation to class as a business. As you say it needs to be extreme.