I’ve built up significant crypto holdings - please help!
18 October 2021
Question by Matt
Hi, I’ve built up significant crypto holdings over the past few years and now want to cash out a large amount to pay off some of the mortgage and buy a new car. I want to reduce the amount of tax I need to pay so was thinking about creating a document declaring I’ve gifted 50% of the ownership to my wife (I started building my portfolio before we were married). Would this be the best option or should she create a new wallet into which I transfer half of the crypto assets?
Answered by Boring Money
You are referring to the interspousal asset transfer exemption which you can use to transfer the ownership of assets between spouses whilst not incurring any CGT on the profit when the transfer/disposal takes place.
With crypto investments, we're still in a relatively grey area and ongoing legislative consultations, so whilst not being able to offer advice, there are additional considerations at play which you need to consider such as the unique references used in token trading which make a re-registration or transfer of ownership more complex then with traditional investments.
I would suggest speaking to a legal / tax adviser operating in this space to find out what the options are and how to best approach it to stay within the legislative framework provided by HRMC prior to making any trades.