CGT on crypto sale for non-resident ?

[that_person]

13 hours ago, Parley said:

Why would he have to move back to Australia to sell them here. 

I assume he is just asking about selling them using an Australian exchange like Coinspot vs a UK exchange like Coinbase UK. 

yes, in essence this is what I was asking. 

Just trying to navigate these CGT waters as I've never had to pay it before.  Weighing things up I think the fact that I will get the tax free allowance in the UK is going to sway it to sell in the UK.  Any amount after the tax free allowance CGT will be at 20%.

[Wanderer Returns]

12 minutes ago, that_person said:

yes, in essence this is what I was asking. 

Just trying to navigate these CGT waters as I've never had to pay it before.  Weighing things up I think the fact that I will get the tax free allowance in the UK is going to sway it to sell in the UK.  Any amount after the tax free allowance CGT will be at 20%.

Cryptocurrency is an intangible asset so when you dispose of it you'll be taxed in the UK, because that's where you're currently resident for tax purposes. It's irrelevant whether you sell them on a British or Australian exchange, which will just depend on which country/currency you prefer to hold FIAT money.

After deducting your CGT allowance of £12,300 you'll be taxed at 10% on any further gains, if when combined with your other income the total amount is lower than £37,500 (the basic rate tax band). Anything above that would be taxed at 20%.

[Marisawright]

8 hours ago, that_person said:

yes, in essence this is what I was asking. 

Just trying to navigate these CGT waters as I've never had to pay it before.  Weighing things up I think the fact that I will get the tax free allowance in the UK is going to sway it to sell in the UK.  Any amount after the tax free allowance CGT will be at 20%.

@that_person, the bottom line is this:  it makes absolutely NO difference where you sell.   As a UK resident, you are liable to pay your tax on the transaction in the UK.  End of story, no other options available to you.   You could sell in Australia, the US or Timbuktu and you'd still have to pay your tax in the UK.

International tax law says that you pay tax where you live, not where you make the transaction.  You might sometimes have to pay tax in the foreign country as well, but never instead of.

Edited January 10, 2021 by Marisawright

[Ken]

On 08/01/2021 at 08:36, Parley said:

I don't think you get the tax free threshold in Australia as a non resident.

It is probably easiest just to sell them via a UK exchange and add to your UK tax return.

There's also the little matter that that_person purchased the Cryptocurrency while resident in Australia. Did they pay the CGT owing when they departed Australia or did they make an election to keep them as a CGT asset?

[Gary H]

You can get a debit card now linked to crypto that will stop you from having to change back to Fiat and getting heavily charged at an exchange.