What is taxable

Hi, sorry if this seems like a silly question, but…

Am I correct in thinking that only when I withdraw profits to back to FIAT or make a purchase using crypto, then those funds are taxable , if it is excess of my capital gains allowance?

If funds remain in a wallet, then they are not taxable until “brought back down to earth”?

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Maybe also tell where you come from, as every country has it’s own tax rules.

But for your question nearly every country handles it the same:
Every crypto to crypto is taxable. As for taxes you basically sell to FIAT and then buy some other crypto with FIAT.
Usually only things like wrapping some crypto to be used on an other chain is not taxable.

Each country is different but in the UK you are not liable for CGT if you are purely holding. It is only upon the disposal of the asset, whether that be a trade from one coin to another, back to fiat currency, or the purchase of goods/services that CGT then becomes due. It’s not to do withdrawals from your account. So yes you pretty much have it right if you’re UK which I guess you are, Cheers :slightly_smiling_face:

Hey @AxeGrinder

Great to hear from you!

As others have mentioned, it would be good to understand firstly, where you are based. We can then provide you with resources and some general tax advice. :smiley:

We have written some articles on how different countries apply Income and CGT tax, check it out here - Cryptocurrency Tax Guides & Help | Koinly

If you need a tailored answer or anything account related, please get in touch with us via email on [email protected]!

Best wishes,

Ali :rocket:

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