Part 10 - The chain of crypto taxes

The opportunity to make life-changing amounts of money in crypto is there for everyone. Even if you make small amounts of money, you may still want to make a donation to charity. Whatever the level of your donation, so long as there is no bounty in you doing so i.e. you receive no kick-back from the charity or no other forms of benefit, the charitable donation is not subject to capital gains tax when you dispose of the crypto.

At the time writing, there is no mechanism for a UK tax payer to be able to claim gift aid on donations of crypto. As crypto does not (yet) constitute legal tender throughout the modern world (except for in El Salvador and the City of Miami with their ‘MiamiCoin’), it is not recognised as money, and so for a charity to receive Gift Aid on a gift of crypto, it would first need to be converted to cash and the cash then gifted to the charity.

If you trade your crypto through a limited company, such as a family investment company, any gifts of crypto to charity will be a tax deductible expense.

Find out more about MiamiCoin and Okcoin here.