Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
1–10 of 12 posts
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#2Does this mean one has to pay Capital Gains or not?
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#3Does this mean one has to pay Capital Gains or not?
From what it looks like, yes.
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#4Does this mean one has to pay Capital Gains or not?
It seems to suggest that buying bitcoin based on speculation is considered gambling and thus GCT isn't applicable (nor is offsetting your losses against other taxable income).
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#5Why are they concerned about being homogenous with EU rules when brexit was clearly voted for and said to be enacted and on the way?
More evidence of a 'stall forver' plan for brexit.
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#6Why are they concerned about being homogenous with EU rules when brexit was clearly voted for and said to be enacted and on the way? More evidence of a 'stall forver' plan for brexit.
this was written in 2014
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#7Why are they concerned about being homogenous with EU rules when brexit was clearly voted for and said to be enacted and on the way? More evidence of a 'stall forver' plan for brexit.
Fist off, this was written pre-Brexit.
Second, given the importance of the EU to UK trade, it’s likely that almost all regulations will be harmonised with the single market going forwards anyway.
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#8Does this mean one has to pay Capital Gains or not?
It seems to suggest that buying bitcoin based on speculation is considered gambling and thus GCT isn't applicable (nor is offsetting your losses against other taxable income).
I doubt that. Not all speculation is gambling. They say:
"Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual [...]"
But also:
"depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable"
In my opinion, this means that gains from regular buying and selling of bitcoin are very likely subject to CGT, and that there would have to be an additional element of risk or chance to make it more speculative in order to be exempt from CGT.
I wouldn't want to defend any other position and therefore I will be including my bitcoin gains (and potentially losses) in my CGT tax return.
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#9Earlier quoted context omitted.
It seems to suggest that buying bitcoin based on speculation is considered gambling and thus GCT isn't applicable (nor is offsetting your losses against other taxable income).
I doubt that. Not all speculation is gambling. They say: "Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual [...]" But also: "depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable" In my opinion, this means that gains from regular buying and selling of bitcoin are very likely s…
I think it means normal people pay CGT, rich people don’t need to.
Re: Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014)
#10Earlier quoted context omitted.
I doubt that. Not all speculation is gambling. They say: "Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual [...]" But also: "depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable" In my opinion, this means that gains from regular buying and selling of bitcoin are very likely s…
I think it means normal people pay CGT, rich people don’t need to.
Normal people, as in average earners, are unlikely to pay any tax at all. They tend to use spread betting or stay below their £11,300 CGT allowance.