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UK residents, how do you "avoid" paying taxes on crypto gains using legal avenues?

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by COINS NEWS 53 Views

First of all I am paying my taxes every year so please don't freak out. I'm not trying to scam the government here. But I do want to minimize the amount I need to pay.

One of the obvious things that a crypto investor can do in the UK is to take the advantage of the Capital Gains Tax Free Allowance. This tax yer the amount was reduced to £6000 and if you make anything under £6000 in profit you are not going to pay any taxes at all. Not great, not terrible.

But what if I've made for example £12000 in profit? Can I for instance gift £6000 to my wife so she can take advantage of her's capital gains tax free allowance as well? According to the UK law, cash gifts are not liable for an income tax, because it's not an income, it's a gift. But would that apply to capital gains too? If I sell £12,000 worth of crypto, I'm liable for £6000 tax on it after deducting £6000 Capital Gains Tax Free Allowance for myself. But what if I give my wife £6000 BTC instead and not cash and then she sells it on Coinbase. Does this sill count as a gift? If it does then that way we could potentially get £12,000 tax free profits each tax year.

What do you guys think? What's your take on it?Or maybe you know other legal ways to pay less taxes on capital gains? In one discussion someone mentioned that disparately you can put your gains in a lifetime ISA account and that is not taxed? But it's hard to believe that. Have anyone came across this?

BTW this is all hypothetical, I haven't made that much profit yet lol, unless I sell all my Moons but I'm not planning on doing that just yet. I'm just thinking about a long-term strategy if I need to cash out at some point during the next bull run.

submitted by /u/rootpl
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