What is DEFI? [Decentralised Finance] - Simple Explanation (and how it's taxed)

[@themogulshaneil]

Thanks for your video, my question to you is, could you expound further on the “could trigger a capital gains tax event”, what would that trigger look like in practice? So for example if I’m lending £10,000 worth of crypto, and no longer have “beneficial ownership”, but in a year’s time receive £30,000 worth of crypto (ignoring losses and allowances for simplification), what portion of my crypto asset would I be required to pay the capital gains tax? Would I be required to pay on the total £30k or just the £20k profits? Thanks a mil in advance by the way and love all your videos of course ❤️

[@tonydCFO]

Hi Shaneil - this is a great question and not really explained by HMRC - follow me on twitter @TheCryptoTax and I will be addressing this soon :-)

[@themogulshaneil]

@@tonydCFO Thanks so much :) will do

[@jamiewalker8772]

That is an outstanding question and articulated brilliantly. Well done. I’ve been scratching my head on that one myself

[@S734L7H1]

So my friend made me buy some crypto 8 years ago and had it stored on usb - never bothered - but upon checking , the value went high as 25k and down to now 8k .....this was with a investment of 2k . So what happens with tax on that ? Next move ?

[@Spartacusx-xh3tg]

Time to get a second passport.

[@tonydCFO]

Fair point 👍

[@MC-hr4mi]

Absolutely! "Nomad Capitalist" is a great KZbin channel.

[@melomelomelody6860]

Do you know whether capital gain tax for individuals is same with business investor? Can koinly also support business user?

[@tonydCFO]

In the UK, Crypto rules differ between Individuals and business entities (ie - Limited Co's) - the matching (cost basis) rules are different and the latter is subject to corporation tax - Koinly can support business users as it has an option to select 's.104 pooling for businesses or individuals'

[@melomelomelody6860]

@@tonydCFO Thanks for your reply. 😊

[@eugenmihalache4371]

If im purchase nft is taxable as well as defi?

[@tonydCFO]

Although HMRC have not explicitly provided guidance on NFT's (at the moment), in my view, HMRC would consider NFT's as part of the definition of Crypto they provide - so yes, I think HMRC's position would look upon NFT's as taxable.

[@Fr0st1s]

Do you think accointing is a good crypto tax software?

[@milosthesavage]

Based on reviews and my personal experience; I think Koinly is better.

[@tonydCFO]

Hi Modestas - when choosing a Crypto tax software, my advice would be to ensure the software enables automated API connections to multiple exchanges, wallets and blockchains. And then seamlessly syncs all the data from various sources at a press of a button. So, do some of your own independent research, but I myself use Koinly as it connects to over 600+ exchanges/wallets/blockchains. I hope this helps

[@alannaolteanu4549]

@@milosthesavage Agreed. I've actually tried both, and koinly was more accurate (which meant less time spent going over the files), supported more exchanges, and blogs to support me when I needed it.

[@milosthesavage]

​@@alannaolteanu4549 The real question is; you got GAINZ or what?