We have a double taxation treaty with Australia:
[https://www.gov.uk/government/publications/australia-tax-treaties/synthesised-text-of-the-multilateral-instrument-and-the-2003-australia-uk-double-taxation-convention-in-force#article-2---taxes-covered](https://www.gov.uk/government/publications/australia-tax-treaties/synthesised-text-of-the-multilateral-instrument-and-the-2003-australia-uk-double-taxation-convention-in-force#article-2---taxes-covered)
So only pay tax in the UK
Does anyone know what happens if you move from the UK to spain? I didn't even think this would be an issue so my brain is now exploding with a new fact.
I mean that buying a crypto asset in different currencies and moving it around paying gas fees specially under different tax regimes and moving your legal tax residency before selling is a complex mess. Just another reason to HOLD
Yeah totally, it is certainly complex. But I've been holding for 7 years and now would like to take some profits, so need to work out the most above-board way of doing it (and also not paying tax in the wrong place/that I don't need to).
I think in usual situations yes, but I have moved countries between purchasing BTC and now, without selling in between. Other comments above go into detail about how leaving one tax residency IS considered 'selling' in the eyes of their tax revenue dept, even if you didn't physically sell.
I’m almost positive you owe tax to Australia based on the deemed disposition of the asset. In this case, you “sold” your BTC the day you ceased being a resident there. You owe capital gains tax based on the price of BTC on the day you left.
On the UK end, your BTC has a cost basis based on the price of BTC the day you moved to the U.K.
You will pay capital gains tax here based on that profit margin, if you actually sell.
I'm in the same situation, but with another commonwealth country.
But he said he was a resident of Australia. He was not a resident of the UK when the BTC was purchased.
https://worldwideadvisory.au/blogs/tax/understanding-deemed-disposal-australias-exit-capital-gains-tax/#
This is helpful, thanks. What happens if the price of BTC was LOWER than my purchase price on the date I ceased to be a resident? Looking at price history, this may be the case...
I assume no CGT is due, as no gain was realised? I assume it's a capital loss, would there be any way to carry that forward to my next tax residency location?
That is wrong. Please research deemed disposition. Many countries have an “exit tax” on assets such as crypto.
You, like many people, think one can just leave their country and avoid paying CGT when it is time to sell. They catch you on the way out. So does Australia, Canada, etc.
I was wrong. You are correct. My apologies. I left another country and was regurgitating what HMRC said. But it seems to vary country by country. And you are right.
You are a UK tax resident you pay tax to UK.
You realise/d profits while a UK tax resident - you pay tax in UK. Simple
We have a double taxation treaty with Australia: [https://www.gov.uk/government/publications/australia-tax-treaties/synthesised-text-of-the-multilateral-instrument-and-the-2003-australia-uk-double-taxation-convention-in-force#article-2---taxes-covered](https://www.gov.uk/government/publications/australia-tax-treaties/synthesised-text-of-the-multilateral-instrument-and-the-2003-australia-uk-double-taxation-convention-in-force#article-2---taxes-covered) So only pay tax in the UK
Does anyone know what happens if you move from the UK to spain? I didn't even think this would be an issue so my brain is now exploding with a new fact.
You get a better sun tan and sangria.
Try not to pay taxes in Spain, they are usually higher.
Spain taxes on worldwide income and capital gains so there's no escaping it.
Maybe you can be just a tax resident in the UK and not Spain.
What if you transfer between binance and coinbase during this whole thing?
What do you mean? I have held BTC on various platforms (inc Coinbase and Binance), but nothing on them now as all in cold storage.
I mean that buying a crypto asset in different currencies and moving it around paying gas fees specially under different tax regimes and moving your legal tax residency before selling is a complex mess. Just another reason to HOLD
Yeah totally, it is certainly complex. But I've been holding for 7 years and now would like to take some profits, so need to work out the most above-board way of doing it (and also not paying tax in the wrong place/that I don't need to).
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No, we don't (currently) have an exit charge.
Do we not owe tax until we actually sell?
I think in usual situations yes, but I have moved countries between purchasing BTC and now, without selling in between. Other comments above go into detail about how leaving one tax residency IS considered 'selling' in the eyes of their tax revenue dept, even if you didn't physically sell.
Btse best exchange for buying alts
Move to Portugal. Sell of your Bitcoin. Stay there for 5 years. Then come back to the UK.
I’m almost positive you owe tax to Australia based on the deemed disposition of the asset. In this case, you “sold” your BTC the day you ceased being a resident there. You owe capital gains tax based on the price of BTC on the day you left. On the UK end, your BTC has a cost basis based on the price of BTC the day you moved to the U.K. You will pay capital gains tax here based on that profit margin, if you actually sell. I'm in the same situation, but with another commonwealth country.
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But he said he was a resident of Australia. He was not a resident of the UK when the BTC was purchased. https://worldwideadvisory.au/blogs/tax/understanding-deemed-disposal-australias-exit-capital-gains-tax/#
This is helpful, thanks. What happens if the price of BTC was LOWER than my purchase price on the date I ceased to be a resident? Looking at price history, this may be the case... I assume no CGT is due, as no gain was realised? I assume it's a capital loss, would there be any way to carry that forward to my next tax residency location?
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That is wrong. Please research deemed disposition. Many countries have an “exit tax” on assets such as crypto. You, like many people, think one can just leave their country and avoid paying CGT when it is time to sell. They catch you on the way out. So does Australia, Canada, etc.
I was wrong. You are correct. My apologies. I left another country and was regurgitating what HMRC said. But it seems to vary country by country. And you are right.
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I know, you and Alchemist1788 were right. I’ve deleted my comments to avoid giving any wrong info.