The hype around cryptocurrency is now growing dramatically. However, what are the legalities behind it?
Cyptocurrencies are now regulated by the Financial Services Commission. If you are actively trading Crypto, you should keep records of your buying and selling transactions. Substantial Gains above your Capital Gains Tax threshold are chargeable to CGT tax. You must report these on your returns.
With the volatile nature of crypto, whilst many people are sceptical about investing, a growing population now have a portfolio of currency. But what happens to this portfolio on your death? Do you remember your Wallet Key? Who has access to this? Without the Key, no one can close your portfolios and appropriate your funds. Valuation of crypto on death follows the same principles as shares. However, unlike share, crypto prices can fluctuate significantly on a daily basis. This means that on the day of death, your portfolios could leave you with a significant tax bill, but when the assets are eventually disposed of, your Estate could suffer a significant loss.
It is important that you discussing crypto you may hold when making your Will. Consultations are confidential and with a cyber secure firm, any information we hold for you is protected.