Mike on Nostr: To leave the UK tax system, you have to pay 24% CGT on unrealised assets. That's the ...
To leave the UK tax system, you have to pay 24% CGT on unrealised assets. That's the kicker that I didn't know until recently.
However, if you live abroad and earn abroad and have your wealth abroad and it never returns to the UK (at least for 5 years), then you pay no tax on your foreign earnings / profits.
I am therefore choosing not to leave the UK tax system, which means I don't have to pay tax on my unrealised Bitcoin profits.
The danger with this approach is that if the UK system becomes more draconian and starts reaching out to non-doms living abroad, I could end of worse off. It is a gamble.
As for moving abroad, there are lots of options. I am choosing Barbados as it is cheap, easy and quick and after visiting the place I actually like it, so may spend some time actually living there, perhaps 3 months in a year.
I don't know all the options, but the route I'm choosing is to form a company out there and use that as a basis to obtain citizenship first, takes about 3 months, then tax citizenship, another 3 months.
The tax citizenship is a backup in case I need to leave the UK tax system quickly.
I will then live in various places, as yet to be decided, not spending more than 183 days in any tax year in one location and not spending more than 91 days in the UK within any tax year.
The requirements, for me, are proving you have more than $1M of assets. N.B. They don't recognise Bitcoin as an asset.
You can also use income as a route, which is what my non-dom buddy is doing. I don't know the income requirements.
However, if you live abroad and earn abroad and have your wealth abroad and it never returns to the UK (at least for 5 years), then you pay no tax on your foreign earnings / profits.
I am therefore choosing not to leave the UK tax system, which means I don't have to pay tax on my unrealised Bitcoin profits.
The danger with this approach is that if the UK system becomes more draconian and starts reaching out to non-doms living abroad, I could end of worse off. It is a gamble.
As for moving abroad, there are lots of options. I am choosing Barbados as it is cheap, easy and quick and after visiting the place I actually like it, so may spend some time actually living there, perhaps 3 months in a year.
I don't know all the options, but the route I'm choosing is to form a company out there and use that as a basis to obtain citizenship first, takes about 3 months, then tax citizenship, another 3 months.
The tax citizenship is a backup in case I need to leave the UK tax system quickly.
I will then live in various places, as yet to be decided, not spending more than 183 days in any tax year in one location and not spending more than 91 days in the UK within any tax year.
The requirements, for me, are proving you have more than $1M of assets. N.B. They don't recognise Bitcoin as an asset.
You can also use income as a route, which is what my non-dom buddy is doing. I don't know the income requirements.