FAQ on UK Tax for Cryptocurrency
2018-01-24, 02:43 PM, (This post was last modified: 2018-01-24, 06:32 PM by JustPlainLucas.)
#1
Post directed to UK residents and non-residents who are subject to UK tax law.


1. What is crypto-currency from the Tax perspective?

Crypto-currency is a digital asset.
"A digital asset, in essence, is anything that exists in a binary format and comes with the right to use. Data that do not possess that right are not considered assets. Digital assets include but are not exclusive to: digital documents, audible content, motion picture, and other relevant digital data that are currently in circulation or are, or will be stored on digital appliances…" Thank you Wikipedia.


2. What are the most common activities which relate to crypto-currencies & which Tax relates to it. 
Mining - Income Tax or Capital Gains Tax or Corporation Tax
Trading
Margin Trading - considered as gambling = tax free
Market Exchange - Income Tax, Corporation Tax
Investing
Long term HODL - Capital Gains Tax, Corporation Tax
ICO investment - Capital Gains Tax, Corporation Tax
Cryptogames (think: Cryptokitties, Ethercraft) buying and selling virtual goods in exchange for digital assets. - No Tax, Income Tax, Corporation Tax
Receive Crypto-currency as a gift - Inheritance Tax

3. How to determine which Tax treatment to apply?

There is no golden rule, or one fits all method.
I will risk using statement: Every "portfolio" once cashed will need to be reviewed under the current rules and correct treatment must be applied.

It does not really tell you much apart from the fact that the Queen will want to get her share.

4. What can be done to pay less, nothing or even get a refund. 

https://en.wikipedia.org/wiki/Digital_asset
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lingaa(2018-01-24 06:31 PM) 
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2018-01-24, 02:46 PM,
#2
Maybe the great HawkEye could write some words about taxes in the UK, since his company (CPAElites Ltd.) is registered at the UK?
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HawkEye(2018-01-24 04:47 PM) 

.

My latest thread: 3 to 5 Million US$ revenue



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Automate your daily work with Bots!
Then you'll have more time to sleep. ;-)
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2018-01-24, 04:50 PM,
#3
(2018-01-24, 02:46 PM)CharlieHarper Wrote: Maybe the great HawkEye could write some words about taxes in the UK, since his company (CPAElites Ltd.) is registered at the UK?

I'm afraid I am too lazy to do my taxes I have an accountant for that.  Grin
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euforio(2018-01-24 09:21 PM) CharlieHarper(2018-01-24 04:57 PM) 
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2018-01-24, 06:31 PM,
#4
Interesting information, Was not aware of these things.
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2018-01-24, 09:20 PM,
#5
Thank you for the information buddy! ;)
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