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Gifting cryptocurrency to other people

This article is archived and may not be up-to-date.

Started ‎3 May 2018 by
Modified ‎19 March 2019 by

Question

What are the tax consequences (for me) if I give cryptocurrency to someone as a gift?

Answer

Our view is that cryptocurrency is neither money nor foreign currency. Cryptocurrency is considered to be a kind of property and an asset for capital gains tax (CGT) purposes.

 

If you own cryptocurrency, and you transfer it to another person, you’ve disposed of a capital asset and a CGT event has occurred. You've made a disposal, even if you haven't received any consideration for the transfer.

If you gift a cryptocurrency, you're taken to have received its market value at the time of the disposal as capital proceeds, and you'll need to work out whether you have made a capital gain or a capital loss on the transaction.

This is a similar scenario to the transfer of shares – if someone transfers shares to you, you become the owner of those shares. If you transfer the shares back or on to someone else, you disposed of the shares and a CGT event occurred.

Find more information on the CGT consequences of disposing of cryptocurrency at Cryptocurrency as an investment.

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