Does anyone know in the UK if we pay tax on the overall profit or is tax charged by number of transactions?
I used a bot with my account the number of transactions very large.
If your Capital Gains (e.g 8000 per tax year) are below the exempt annual limit (which is 12300/tax year). Do you still have to file the return?
Tax is only on the capital gains and the number of transactions makes no difference.
If you disposed of more than 4 * £12300 (£49200) of assets in a year (this value is from memory) then yes you have to fill a capitals gains section. For example this doesn’t mean your liable for tax as you could have bought and sold £12300 of crypto 4 times day trading and made no profit.
But in above scenario you still have to fill in capitals gains section, provide your calculation and proof of actual gains but they can be less than the £12300 allowance so you owe no tax.
If you are absolute certain you made less than £8000 gain but you sold more than £49200 you could always take a chance of not filling a return but be warned HMRC put requests into a number of exchanges asking for people that have been trading in excess of £20000 a year. This may then flag you up as high risk and they may come after you to submit a return. No real big issue in this scenario as you plead innocence as you didn’t.t have gains over £12300, submit a return that shows you owe no tax and they leave you alone.
Key to above is keep records for 7 years so if for some reason they come after you you can prove you don’t owe tax.
Adrian
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