Basically, what I've read so far is that it won't work.
What is the theory behind it working?
You move to Ireland or UK and become a non-dom tax resident using the remittance basis.
You make a capital gain on your crypto. The exchange you traded on is not domiciled in UK or Ireland.
You figure that as long as you don't remit the proceeds to UK or Ireland, you should avoid tax.
From what I've seen in my online research, this will not be the case.
HMRC wil consider the crypto a UK-situs asset. The location of the exchange is not considered.
Bc the crypto is in cyberspace, its location is considered to be where the investor is. Therefore it is treated as if it has already been remitted.
Ireland is similar.
I don't know how firm this is and whether people have been avoiding paying tax if they keep the crypto profits offshore.
People will say "use a non-KYC exchange". THe problem with this as I see it is if you get audited, you will have money that you onboarded that is unaccounted for.
Let's say you sent 100K to XYZ exchange and withdrew 25K to send it to your favourite non-KYC exchange. Then you buy crypto and store it in a hot or cold wallet.
You get audited and it only shows the 75K that you didnt transfer out.
Anyone know anything different?
I have a feeling JohnnyDoe will answer this telling me I'm doing this all wrong
What is the theory behind it working?
You move to Ireland or UK and become a non-dom tax resident using the remittance basis.
You make a capital gain on your crypto. The exchange you traded on is not domiciled in UK or Ireland.
You figure that as long as you don't remit the proceeds to UK or Ireland, you should avoid tax.
From what I've seen in my online research, this will not be the case.
HMRC wil consider the crypto a UK-situs asset. The location of the exchange is not considered.
Bc the crypto is in cyberspace, its location is considered to be where the investor is. Therefore it is treated as if it has already been remitted.
Ireland is similar.
I don't know how firm this is and whether people have been avoiding paying tax if they keep the crypto profits offshore.
People will say "use a non-KYC exchange". THe problem with this as I see it is if you get audited, you will have money that you onboarded that is unaccounted for.
Let's say you sent 100K to XYZ exchange and withdrew 25K to send it to your favourite non-KYC exchange. Then you buy crypto and store it in a hot or cold wallet.
You get audited and it only shows the 75K that you didnt transfer out.
Anyone know anything different?
I have a feeling JohnnyDoe will answer this telling me I'm doing this all wrong