UK how to cash out without paying taxes?
There is currently no way of avoiding paying crypto taxes in UK. However, it is possible to route your crypto to a country with very low or no crypto taxation to cash out. This approach is an easy and legal way to reduce the cost of cashing out your cryptocurrency.
HMRC specifies that cryptocurrency could be subject to either Capital Gains Tax or Income Tax, depending on the nature of the transaction.
For capital gains from cryptocurrency exceeding the £12,300 tax-free allowance, the applicable tax rate will be either 10% or 20%. In the case of additional income from cryptocurrency surpassing the personal allowance, the tax rate will range from 20% to 45%.
Your capital gains tax rates depend on your income rate band.
| UK Tax rate | Taxable income |
| 10% | Basic Rate Income Band (up to £50,270) |
| 20% | Higher Rate Income Band (up to £150,000) |
| 20% | Additional Rate Income Band (more than £150,000) |
When a person engages in cryptocurrency mining, receives an airdrop, or obtains cryptocurrency in exchange for goods or services, those earnings will be liable for income tax, and the taxpayer will be required to make national insurance contributions.
| UK Tax rate | Taxable income | Band |
| 0% | Up to £12,570 | Personal allowance |
| 20% | £12,571 – £50,270 | Basic rate |
| 40% | £50,271 – £150,000 | Higher rate |
| 45% | £150,000+ | Additional rate |
Resource: https://blockpit.io/en/tax-guides/crypto-tax-uk-hmrc/