For UK and US ShareCoin Users

Owning shares is an exciting step toward building personal wealth — and in most cases, you don’t owe tax just for owning them. However, there are some basic rules to be aware of depending on where you live.

🇬🇧 UK Shareholders

• No tax on receiving shares
  You don’t pay tax when you receive shares (like ShareCoins converted into shares).
• Capital Gains Tax (CGT)
  You only pay CGT if you sell your shares and make a profit above the annual tax-free allowance (currently £6,000 for 2024–25).
  ➤ Example: If you sell shares and make a profit of £5,000, no tax.
• If you profit £10,000, you may be taxed on £4,000 of that. This is your responsibility to declare to the tax authorities.
• Dividend Tax
  If your shares earn dividends (profit payouts), you may pay tax if your dividend income exceeds £500 per year (as of 2024–25). Below that amount, it’s tax-free.
• Reporting
  You must report any capital gains and dividends to HMRC via a tax return if your income or capital  gains go over the threshold.

USA Shareholders

• No tax on receiving shares
  If you’re gifted shares or earn them through a reward system (not as payment for services), there’s usually no immediate tax.
• Capital Gains Tax
  You only pay tax when you sell your shares for a profit.
  ➤ Short-term gains (sold in under 1 year): taxed as regular income
  ➤ Long-term gains (sold after 1 year): taxed at lower rates (0%, 15%, or 20%) depending on your income and tax status.
• Dividend Tax
  If you receive dividends, they may be taxed depending on whether they are “qualified” or “ordinary.” Most everyday investors qualify for the lower “qualified” rate.
• Reporting
  You must report any share sale or dividend earnings on your IRS tax return (Form 1040 with Schedule D and possibly Form 8949).

✅ General Advice for All Users

• Keep good records of when you received your shares and what they’re worth when you sell.
• Use official tax software or a licensed accountant for accurate filings.
• You don’t need to do anything right away — tax is only owed when you sell or receive dividends above thresholds.