
Revenue and Customs Brief 9: Bitcoin and other cryptocurrencies (2014) - nunoferreira
https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies
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riazrizvi
So no VAT on cryptocurrency-service, cryptocurrency-cryptocurrency
transactions, but yes VAT on cryptocurrency-goods. And standard rules on
capital gains, income tax, corporate tax if you treat your bitcoin as an asset
with a liquid price. ie you pay income tax whether you are paid in money or
assets of equivalent worth. You pay cap gains on annual asset appreciation.

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ionwake
Does this mean one has to pay Capital Gains or not?

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highace
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).

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fauigerzigerk
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.

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hndamien
I think it means normal people pay CGT, rich people don’t need to.

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fauigerzigerk
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.

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fuddcoinn
Why 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.

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matthewmacleod
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.

