Is British Virgin Islands best place to open a company for own funded crypto trading for UK national?

[CryptoLove]

There seem to be different stances on where the best place is to register a company and open a bank account for a UK national to start crypto trading.

BVI and Dubai keeps popping up. Dubai has the crypto trading license but you have to move there to be tax exempt. BVI is apparently tax free if, as the UK national, you are not the major shareholder.

The other problem is opening a bank account to receive profits from trading on Binance. I've been recommended Migom Bank and Bilderlings.

What are the advantages and disadvantages and best way forward from your wealth of experience?

 

[CryptoLove]

Also the other option is just to keep trading crypto personally and pay UK capital‌ gains tax.

 

[Marser]

I think you can be taxed as income‍ ( up to 45% ).

 

[CryptoLove]

CGT for crypto in UK is 10% or 20% depending on your salary bracket AFAIK.‌

 

[Marser]

Yes but you mention trading, so it could be evaluated‍ as income and not CGT, depending on what / how you do it.

 

[CryptoLove]

This is a grey area I'm having difficulty with. HMRC talk about badges of trade‌ to define what is income tax and what is CGT. Even accountants I spoke to‍ seem to be fuzzy about this. Seems like HMRC don't want to define it as⁠ trading where possible. Apparently some case where a guy got his other business corp taxes⁤ offset by losses from trading. Then again, trading/investing as an individual, I believe you can⁣ offset CGT tax with crypto losses (not sure). If you use algorithm based trading then⁢ i would assume its trading not investing.....this is where its murky and i wish there︀ was someone who's been through that to advise.

 

[Wellington]

BVI can't register companies involved in blockchain/crypto currency (they don't regulate it)... been there done‌ that with 3 sets of lawyers... plus their compliance demands are making BVI companies expensive‍ to operate...
Plus as a Brit its treated as a extension of you anyway...

 

[Rzeznik]

why you‍ cannot recive profits (dividends) in crypto ?
using crypto you don't need bank account IMO⁠ all time since you can have like binance/coinbase/nexo card

 

[CaptK]

As a Brit and trading on Binance you can't really get round it because Binance‌ will hand over your information if HMRC sneeze.

As you are trading personally on Binance‍ and not an enterprise account you are taxed as a higher rate income payer.

If you use a DEX to trade and cash out OTC for now then you can⁠ mitigate tax for now.