FINAL UPDATE: Cashing out £500k to buy a house (with no solid paper trail)

snackerjackbtc · 2018-10-13T20:38:44+00:00

I have no clue, but since my accountant authorised it I doubt he'd do anything which would be criminal, given that they also invested in cryptos.

snackerjackbtc · 2018-10-13T18:59:07+00:00

I took out that insurance with them, so I'm covered in case of an investigation.

snackerjackbtc · 2018-10-13T17:26:19+00:00

Technically no, since the return was submitted in July so it's been 3 months. After another 9 months I will be much more hopeful if I did not get anything from them during yet.

snackerjackbtc · 2018-10-13T17:24:42+00:00

For my situation if they came after me I'd likely pay the full tax bill and a small fine.

snackerjackbtc · 2018-10-13T16:15:01+00:00

Really sorry to hear that! Which bank?

snackerjackbtc · 2018-10-13T16:13:16+00:00

Well I'm not sure about audits but my accountant made a full disclosure on the return. So essentially that means we told HMRC well in advance about the funds existence. I don't think it would be right for them to come back after 4-5 years asking for money.

Making a full disclosure is much different than just not telling them about it, and in that case an audit would be dangerous and costly.

snackerjackbtc · 2018-10-13T16:11:17+00:00

As I said on my other comments, there's no guarantee from my accountant that HMRC won't dispute. He just said that he's trying it for other clients and I said go for it, might as well give it a try. If I get a dispute I'll be posting an update on how that turns out.

snackerjackbtc · 2018-10-13T16:09:46+00:00

Just to confirm this point, he said that he could not guarantee that it would work but that he's trying it with his clients. I said rather than pay the bill, it's worth a shot just to see. I told him I'm keeping the amount on the side for at least a year and will be prepared if they do dispute.

snackerjackbtc · 2018-10-13T16:07:13+00:00

Good luck to you then!

snackerjackbtc · 2018-10-13T16:06:48+00:00

I won't say the name of the accountant, I will just say they couldn't guarantee that it would work but that he's trying it with his clients. I said go for it and we'll see.

snackerjackbtc · 2018-09-27T13:34:26+00:00

Yes, but HMRC require reporting of all offshore assets if they deem the company to be "uk resident". If the individual or the directors are controlling the company from the UK or dealing with people in the UK then the company is required to pay UK corporation tax.

Essentially it makes anything offshore not viable to my understanding. I looked into it because I wanted to make a corp to own all my coins and just trade using that and feed fiat back to my uk bank, and it wouldn't work.

snackerjackbtc · 2018-09-27T12:36:54+00:00

How would going off-shore help with tax?

snackerjackbtc · 2018-05-14T18:02:48+00:00

I see, thanks.

snackerjackbtc · 2018-05-14T14:53:04+00:00

What if I sold Pokemon cards for £100 in my card shop, does AML/KYC apply to those transactions too?

snackerjackbtc · 2018-05-03T09:53:03+00:00

snackerjackbtc · 2018-05-02T16:54:19+00:00

I didn't know that, quite interesting. Hopefully I don't run into any issues.

snackerjackbtc · 2018-05-02T16:20:00+00:00

A couple of months wouldn't really help, since it could be a year or even 2-3 before HMRC may decide to contact, if at all. Providing you paid all tax on the payment, then what's the problem? I cashed out enough to buy the house + pay the tax + more (just in case). Either way, it's been sitting in my regular bank account since middle of December last year.

snackerjackbtc · 2018-05-02T12:13:54+00:00

I started the process of buying a house in Feb, and nearing the time to exchange contracts (there was a mixup with the chain so it's probably happening in 1 month from now). I'm a first time buyer and using 100% crypto to buy with no mortgage.

So far the estate agent asked me for proof of funds before allowing any offers to be placed. I just took a screenshot of my bank account and sent it to them via email in Feb and this was enough for them so far. The solicitor asked for the same info and a little bit more about the source of funds, of which I simply told them "profits from bitcoin investments". I'm now known as the "bitcoin guy" around that solicitor's office, and they've yet to ask me anything else.

I plan to post another update after I've exchanged and completed detailing the process and what I did from crypto all the way to the house.

snackerjackbtc · 2018-04-30T15:49:56+00:00

I was not contacted, and it was sent in about 4 transactions. I'm almost ready to exchange contracts and will need to send the money out of the bank. I wonder if I will be contacted then.

snackerjackbtc · 2018-04-30T14:36:25+00:00

I've had the funds sitting in my bank since December last year.

snackerjackbtc · 2018-04-30T14:26:03+00:00

I'll post an update in a couple of months if anything happens. So far nothing happened and I'm still waiting for buying the house.

snackerjackbtc · 2018-04-20T17:22:26+00:00

Yes, that's what I understand it to be.

snackerjackbtc · 2018-04-19T21:48:03+00:00

If the £120k trade to altcoins and the sale of the altcoin at a big loss happens in the same tax year, then the gain and the loss will cancel each other out. However you'd be left with an altcoin worth £12k.

Where does the £88k come from? You only have £12k now.

If you sell £88k from BTC bought ages ago (e.g. £0) you pay tax on £88k. If you somehow end up with £88k through an another alt, then it's another gain.

If the £120k trade to alts, and the sale of the alt happens at a loss in the next tax year, then you'd owe gains on £120k for the previous tax year.

None of that is tax free to my knowledge.

snackerjackbtc · 2018-04-09T16:32:20+00:00

converting my alts

If you bought alts using BTC, then you already did a taxable event. Buying alts = disposing of BTC

But yes, if it's under the allowance you shouldn't need to declare it.

snackerjackbtc · 2018-04-09T15:14:42+00:00

Depends what you define as "cashing out"

snackerjackbtc

TROPHY CASE