If I receive crypto as a gift, in a stablecoin such as USDT, would I have to pay any tax?
When you receive a gift, in most cases this could be subject to Income Tax. It could also be subject to Capital Gains Tax if you later decide to dispose of the USDT and realize a profit.
Rules for gifting crypto vary across the different tax authorities so I would highly recommend seeking clarification from a tax expert on how this would be viewed by HMRC.
As always, if you need further assistance relating to your account, get in touch with us at [email protected]
Hey @Ali_Koinly, I don’t think your statement about the receipt of a gift being subject to income tax is correct. In most jurisdictions you do not have to pay income taxes on a gift you receive, and you generally do not have to report the gift to the tax authority. That’s because gifts are not considered income for tax purposes.
It is correct that the subsequent disposal of the crypto you received as a gift will generally be subject to capital gains tax unless there is an exemption available (generally the first $12,300 of capital gains is exempt from tax in the UK).
In contrast to the gift recipient’s position, in some jurisdictions the person making the gift may be subject to gift tax or other tax consequences associated with the gift,
Good to hear from you!
I dont doubt you for a second, however we try to tread very carefully around the subject of tax advice on the forum and refrain from offering tax advice specific to individuals, so apologies if my initial response came across as vague.
It may be true that you would not need to declare the amount as a Gift, however in some of the regions we supply reports for this has been seen as Income, so we can accommodate both.
One of the greatest benefits of Koinly, is that it is adjustable to the users needs, so we recommend you seek tax advice from a professional within your jurisdiction and use Koinly accordingly.
We hope of course, that in the future as Koinly grows, we can have tax experts on the forums who can give such advice
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.