UK Bitcoin (BTC-USD) Holders Weigh Options Ahead of Autumn Budget Due to Be Announced on Wednesday

With the autumn budget set to be announced on Wednesday, holders of bitcoin (BTC-USD) in the UK are considering their options amid anticipation of potential changes to capital gains tax (CGT).

The move comes as the UK government is reportedly considering a range of tax measures to support public services, with CGT seen as a likely target. Several online forums are abuzz with discussions on strategies to minimize potential tax implications.

One common strategy being considered is to sell bitcoin holdings now to avoid the potential impact of higher CGT rates if they are announced. However, this decision depends on individual circumstances and the potential magnitude of the tax changes.

Another strategy being discussed involves using crypto as collateral and borrowing against it, as long as the collateral value exceeds the loan’s value. This approach allows traders to access funds without selling their holdings, thereby avoiding any potential CGT liability.

Additionally, some traders are exploring the option of token-wrapping bitcoin and depositing it on the Ethereum (ETH-USD) blockchain.

While bitcoin itself is not supported by tax-free savings accounts in the UK, some crypto-related assets, such as tokens issued by Grayscale, are available on the New York Stock Exchange, which qualifies for ISAs.

Similarly, stocks of crypto mining firms like Riot Blockchain (RIOT) and Marathon Digital (MARA) also provide indirect exposure to bitcoin’s price and could potentially be held within UK tax-free accounts, like Individual Savings Accounts (ISAs) or Self-Invested Personal Pensions (SIPPs).

The above is the detailed content of UK Bitcoin (BTC-USD) Holders Weigh Options Ahead of Autumn Budget Due to Be Announced on Wednesday. For more information, please follow other related articles on the PHP Chinese website!