One of my clients - UK based citizen of SA, has persuaded his mother to relocate to the UK, through her firm, which is international - offices in 11 countries.
'Someone' has told her that the UK gov't will pay her relocation costs via a grant?
How is it taxable? How is it tax evasion? The gain is not FIAT, it is in crypto wallet. When it is drawn down in April 2022, it will be into a Euro bank account based in Portugal, where my client has full residency, and full fiscal residency, and they don't tax crypto gains!!
It's legal and planned avoidance.
The error lies with you I believe. The crypto gain is in a wallet, and has not been drawn down to FIAT. So it is therefore unrecognized by HMRC as it has no central bank value!!
Once it is drawn down it becomes subject to CGT in the UK. In Portugal it is not taxed at all. They would rather have the funds in their economy. On drawdown the owner is entitled to retain 100% of the gain. So free to spend it on house purchase etc
I think you will find the number of people applying to be resident of Portugal from all over the world is at a record high.
The error lies with you I believe. The crypto gain is in a wallet, and has not been drawn down to FIAT. So it is therefore unrecognized by HMRC as it has no central bank value!!
Once it is drawn down it becomes subject to CGT in the UK. In Portugal it is not taxed at all. They would rather have the funds in their economy. On drawdown the owner is entitled to retain 100% of the gain. So free to spend it on house purchase etc
I think you will find the number of people applying to be resident of Portugal from all over the world is at a record high.
Yes I have read that thoroughly, the tax point for CGT occurs upon transfer to FIAT.
Until then the asset isn't realised as it is still in a crypto wallet, and has no technical value, as it is not controlled by a central bank.
In this instance the funds will be realised into a Euro bank account with a Portuguese Bank, and this isn't happening now until 10th April, which will be 183 days +.
Thank you David.
I thought it was the case that he basically has to wait until he has been out of the country >183 days, then he can draw down his crypto to FIAT in Portugal, and it will fall under Portuguese jurisidction.
As he is emigrating completely and cutting all ties with UK this won't be an issue, he just needs to wait before buying his property.
Thank you David.
I thought it was the case that he basically has to wait until he has been out of the country >183 days, then he can draw down his crypto to FIAT in Portugal, and it will fall under Portuguese jurisidction.
As he is emigrating completely and cutting all ties with UK this won't be an issue, he just needs to wait before buying his property.
My answers
Hi David,
One of my clients - UK based citizen of SA, has persuaded his mother to relocate to the UK, through her firm, which is international - offices in 11 countries.
'Someone' has told her that the UK gov't will pay her relocation costs via a grant?
Not something I have any knowledge of.
Regards
Ian
How is it taxable? How is it tax evasion? The gain is not FIAT, it is in crypto wallet. When it is drawn down in April 2022, it will be into a Euro bank account based in Portugal, where my client has full residency, and full fiscal residency, and they don't tax crypto gains!!
It's legal and planned avoidance.
The error lies with you I believe. The crypto gain is in a wallet, and has not been drawn down to FIAT. So it is therefore unrecognized by HMRC as it has no central bank value!!
Once it is drawn down it becomes subject to CGT in the UK. In Portugal it is not taxed at all. They would rather have the funds in their economy. On drawdown the owner is entitled to retain 100% of the gain. So free to spend it on house purchase etc
I think you will find the number of people applying to be resident of Portugal from all over the world is at a record high.
Thank you :)
The error lies with you I believe. The crypto gain is in a wallet, and has not been drawn down to FIAT. So it is therefore unrecognized by HMRC as it has no central bank value!!
Once it is drawn down it becomes subject to CGT in the UK. In Portugal it is not taxed at all. They would rather have the funds in their economy. On drawdown the owner is entitled to retain 100% of the gain. So free to spend it on house purchase etc
I think you will find the number of people applying to be resident of Portugal from all over the world is at a record high.
Thank you :)
Watch this space. Connect knows more than people realise.
Hi David,
Yes I have read that thoroughly, the tax point for CGT occurs upon transfer to FIAT.
Until then the asset isn't realised as it is still in a crypto wallet, and has no technical value, as it is not controlled by a central bank.
In this instance the funds will be realised into a Euro bank account with a Portuguese Bank, and this isn't happening now until 10th April, which will be 183 days +.
No it doesn't. Non FIAT currency is not taxable anywhere in the world, only taxable when it becomes FIAT. ;)
read the question?
Thank you David.
I thought it was the case that he basically has to wait until he has been out of the country >183 days, then he can draw down his crypto to FIAT in Portugal, and it will fall under Portuguese jurisidction.
As he is emigrating completely and cutting all ties with UK this won't be an issue, he just needs to wait before buying his property.
Thank you David.
I thought it was the case that he basically has to wait until he has been out of the country >183 days, then he can draw down his crypto to FIAT in Portugal, and it will fall under Portuguese jurisidction.
As he is emigrating completely and cutting all ties with UK this won't be an issue, he just needs to wait before buying his property.