So, during the lockdown. I dove into crypto and started investing November 2020.
I have been swapping alt coins extensively. However, I did not know that swapping crypto to crypto was taxable. Which begs to my question.
How do I pay that swap from crypto to crypto if I have no fiat funds to pay for that capital gain. I’m really confused how that works. Does it force me to cash it out to cover my costs for the tax.
From my understanding, The only thing I should pay for is that if I decide to convert my gains into GBP into a UK bank account (MONZO).
For example, from all my trades (swapping alt coins) I have only ever converted USDT to GBP/BTC/GBP and ADA/GBP to a total amount of £12,000. Which I thought was the free allowance.
I have not exceeded that in terms of withdrawal from Binance. Even though my current gains have grown, I have never exceeded to take profit over £12,000. Therefore, is there any point in declaring.
My understanding was that. I only ever have to declare if my cashout (Crypto to fiat into a bank account) if I go over the Capital Gains allowance. Which I haven’t. I just want to keep my bag growing.
I don’t want to tax evade, I just want to know the proper way to do this. How can they expect me to pay for a crypto to crypto swap when I am not even benefiting from the gain because I’m just riding the percentages and not cashing it to GBP.
I really just don’t understand how this works. Also, is it too late for me to declare such information.
Thank-you very much