How to reduce CGT

[bigenginesmallcar]

I currently hold a CFD position in the crypto xrp.

Im in profit but ive just found out you pay tax on anything over 12k profit a year, is there a way to minimise this at all?

The thing is my position says 60% in profit but im really only 20% in profit of the money ive put into the etoro app so dont know how im going to be taxed.

[rxe]

You can generally offset losses against gains - I've never done this with crypto, but in the real world you can generally say "I bought xxx shares in yyy company and lost loads of money, off setting the the $$$$ I made in zzz company.

If you close the loss making positions so you make the loss real, then take your profits on the good one, it will probably work the same way.

Caveat - I have no idea if the rules are the same for crypto.

[bigenginesmallcar]

rxe said:

You can generally offset losses against gains - I've never done this with crypto, but in the real world you can generally say "I bought xxx shares in yyy company and lost loads of money, off setting the the $$$$ I made in zzz company.

If you close the loss making positions so you make the loss real, then take your profits on the good one, it will probably work the same way.

Caveat - I have no idea if the rules are the same for crypto.

I assume it will be as im not holding the crypto purely betting on the price with my CFD.

[JulianPH]

Donkeyapple is your man here, but it may be worth looking at doing this using a spread betting account (broadly the same thing) which would be tax free.

[98elise]

Unless things have changed your total losses and agains for the financial year are are used to calculate your capital gains. If you have any shares that are showing a loss then you can crystalise them to offset any gains.

Beware of bed an breakfast rules though.

https://www.investopedia.com/terms/b/bed-and-break...