Is it your own wallet? If not, get a non-KYC wallet from Phantom or Exodus (or both), and send to that. There are no names associated with these wallets for any exchange to cross-reference.

Second that, same problem with Bitpanda. Now send on to Exodus with just a 37p charge to send to LB👍

Set up the wallet, generate a receive address through it and use that on the exchange as the destination address when buying (remember to buy a few dollars more as there's an extra gas fee to send from your new wallet to LB). Then, when received, you can buy on here and send payment from your new wallet.

Hi
Im worried whats happning in january 2027 about tax any bitcoin transaction.Enyone know more about this

Yeah. You'll be grassed up to HMRC by the exchanges for your purchases. Your own non-KYC wallet gives you an extra layer of separation compared to sending from the exchange so they should have less information to pass on. As long as you don't have Capital Gains of £1k+ in a tax year you should be fine, and not have to do anything. Hopefully...

This is what i was getting at last week when i mentioned they will be looking at who yoru sending it to on the exchnage and flag the account. Everyone was saying oh its fine nothing to worry about. But i can see kraken emailing me in a few months questioning the transactions on my account. Gonna have to get an external wallet me thinks!

Hi stevedogg

See my follow up to Rux's post, I think it could actually be much worse than that.

Hi Rux

If you think about it how are you going to be able to demonstrate that you didn't make 1K£+ moving BTC around when they send you a letter?

I assume that you have looked at their web site but they expect you to keep track of each and every transaction so that you can prove that you didn't generate any gains moving crypto around.

Furthermore if I read correctly they consider "disposing" of crypto i.e using crypto to buy goods and services as a taxable transaction.

It remains to be seen how this goes but if the above is correct they would want to tax you on every amount of BTC you've used to buy stuff.

Better safe than sorry, P2P is where it's at as others have pointed.

The fact that some of the goods purchased would be legally questionable is yet another nightmare on top of potentially facing a huge crypto tax bill with fines and interests going back years.

You guys either worry too much or literally spend tens of thousands on here!

Tens of thousands? I wish polly :-(

Hehe....yeah, but this is why I don't get your level of concern. To make over £1k profit on btc I would have to be staking btc rather than simply using it to buy on LB. If I was staking it and making those gains then thats a subject for a different forum isn't it?
We're just here to get high lol....

Hi Polly

I got burned with my Ebay sales.

Got a letter in 2024 and now have to pay back 6 years of Income tax, interests and fines.

I know what they are capable of, they do not even need to look at the stuff themselves, their Connect AI enhanced system does all the data mining for them.

Remember that they have the power to trigger criminal inquiries if they believe stuff is fishy!

But you had to earn it to pay it yeah?

Yes Polly

I didn't mean to evade, I was just unaware like many UK Ebay users that I had to pay tax on some types of sales.

The lesson is that the taxman does not need to prove that you hve to pay tax, the onus is on you.

So if they go after crypto users biggas will have to provid details of purchases, sales, transfers, disposals,etc.

🤐

yes you would be taxed (in terms of capital gains) on any gains you made disposing of crytpo by purchasing goods, but they're not taxing the entire transaction, they're taxing any gains you made - ie crypto price at time of buying/disposal minus price at time of purchase of the coin itself. (in which case most of us will have made a small loss overall, if you're simply transferring to buy that day etc). I don't think they are going to be particularly interested in what you spent it on, just in terms of their resources/efficiency. An export of the wallet transactions is the most you would reasonably be expected to provide, which would show coins entering and leaving and their prices. Or for you to work the prices out. Not reasonable to expect you to have every end receipt I think. What they'll be far more concerned about in terms of taxation is people who convert crypto into fiat (ie cash) in the exchanges and then withdraw to their bank accounts. If you're not doing it that way round, I think it's highly unlikely they'll focus on you. If we're talking about a few grand spent on crypto here or there. I'm no expert but this is my impression from looking into it all. If cash isn't heading back into your bank, how would they prove you made any gains? (if your wallet transactions show a slight loss)

The main problem with them is that the onus is on you to prove or disprove anything.

You'd have to show the amount leaving the exchange in USD or GBP and how much that was worth once it reached a wallet.

So ou could technically be asked to trace all of your crypto assets up to the point os disposal.

Sign up for koinly or summ.com. Free service to crawl all your btc account activity. I ran a free trace for my coinbase acc and exodus wallet since opened/ used (5 year or so). Everything came back negative gains. I only buy btc and purchase with it straightaway. Don’t hold onto it.

yep I did the same with Koinly and also had small negative gains. It can process all that data for you. Disposal is when it leaves the Exodus etc wallet and goes to a LB/Transaxe one.

I have extreme untreated anxiety and can't keep track of receipts in general, and definitely don't know any addresses...? How can anyone feasibly be expected to, or actually could, keep track of everything? I generally lose more than I gain in any 'disposal', so I'm pleading ignorance and hoping for the best. What could possibly go wrong...?

🤞

Use koinly or summ to work out if in gains or not. Peace of mind :)

So I need to link my ID and my wallet address to this, and also sign up?! Fuck that. That's completely against the principles we're trying to resist.

Principles😂. I don’t get what you mean, it’s just pulling out the data for you that’s already there for all to see to show you whether you got a tax issue or not to be concerned about

Thank you very much😁
So we need to show something in self assesment or is just about profits?

I'd suggest not engaging with them in any way whatsoever, but SA if you must seems like a scenario that could occur.

any name will do it, including your own or joe bloggs

I’m no expert but from what I read it is DAC8 legislation I live in the uk so any transaction made via a exchange like coinbase etoro and the others will be reported to HRMC on or around the 1st Jan 2027 any transactions starting from 1st Jan 2026 will be reported. UK is not in the EU so the UK has its own version CARF does the same thing.

Pretty much my assessment too.

I'm in the same situation any joy yet??