British Tax Authority Updates Cryptocurrency Guidelines, Says It Is Not Money - page 2.

stompix

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Blackjack.fun

Quote from: BrewMaster on November 04, 2019, 07:51:49 AM

if they said "bitcoin is money" then they either have to don't tax bitcoin or tax any other form of money too. like when you convert your fiat to PayPal you would have to pay taxes!

Aren't they already doing this?

Quote

Bank accounts denominated in a currency other than sterling are chargeable assets for
CGT. There is an exemption from CGT for certain funds held in these accounts held by
individuals, but not all. This means that every withdrawal, however small or large, of funds
from accounts that are not exempt funds constitutes a part disposal of the account on which
a capital gain or loss can arise as a result of movements in currency exchange rates.

Every time I start digging about how tax and capital gains work in some other country I'm getting headaches from all the laws that are updated and articles added and the language they use to make things worse...
~~Bottom line, anyone from the UK around here that knows if gains from liquidation of foreign currency are taxed?~~
Lol @gentlemand ninja posting

gentlemand

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Welt Am Draht

Quote from: BrewMaster on November 04, 2019, 07:51:49 AM

it is only the tax authorities and they are categorizing bitcoin as "not money" because it makes it possible and a lot easier for them to then categorize it under their tax laws.
if they said "bitcoin is money" then they either have to don't tax bitcoin or tax any other form of money too. like when you convert your fiat to PayPal you would have to pay taxes!

So far BTC has been treated like foreign currency in UK tax terms. Profits from any foreign currency fluctuations are subject to capital gains taxes just as BTC is. It looks like not much has changed.

blckhawk

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Taxing every single one in an exchange isn't going to be easy. However, exchanges and companies that would pay tax, could pass their tax fees to the traders, like existing taxes in receipts, and just like fees everytime they trade in the platform. The government couldn't identify cryptocurrencies as money since there's no real asset to back it up, it only exists digitally. The value is by supply and demand. So it's more of an asset than money, like a share in a company listed in stock market.

chaoscoinz

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☆Gaget-Pack☆

Quote from: vennali on November 04, 2019, 06:11:53 AM

The United Kingdom’s tax, payments and customs authority, Her Majesty’s Revenue and Customs (HMRC), has updated its cryptocurrency taxation guidelines for businesses and individuals.

On Nov. 1, the U.K. government tax agency, which manages taxes alongside other financial policies, released tax guidance updates that further clarify its stance on how businesses and individuals involved with cryptocurrency will be taxed.

Read more HERE

In the United States, cryptocurrency is treated like a commodity or property type of asset. You have to pay capital gains or regular income tax depending on whether your assets are investment income or earned income. A few months ago they had finally released a real guidance for cryptocurrencies whereas people had been waiting forever for some type of leadway on how to navigate correctly.
All that is left is for the S.E.C to work with the people on issuing clearer guidance than just telling people to do a Howey test in order to determine whether or not a coin/token is a security.

Juggy777

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Quote from: stompix on November 04, 2019, 07:19:10 AM

Full text here:
https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-tax-for-businesses#trading-in-exchange-tokens

A few things besides the whole trade exchange tax stuff is interesting and I do like it, one is about home (hobby) mining

Quote

For example, using a home computer while it has spare capacity to mine tokens would not normally amount to a trade. However, purchasing a bank of dedicated computers to mine tokens for an expected net profit (taking account the cost of equipment and electricity) would probably constitute trading activity. If the mining activity does not amount to a trade, the value (at the time of receipt) of any cryptoassets awarded for successful mining will generally be taxable as miscellaneous income, with any appropriate expenses reducing the amount chargeable.

If the miner keeps the awarded assets, they may have to pay Capital Gains Tax or Corporation Tax on chargeable gains when they later dispose of them.

So, there is a room for a bit of mining avoiding taxes while keeping a low profile, especially since there will be no VAT on crypto sales.

Also, there is a paragraph of allowable costs:

Quote

Certain costs can be allowed as a deduction when calculating if there’s a gain or loss, which include:
<>
advertising for a purchaser or a vendor

Does this mean you can deduct localbitcoin fees?
In all, it seems like they've done their homework quite diligently, they are covering everything, even hard and soft forks and airdrop.

As for the whole crypto is not money, nobody really gives a damn about semantics as long as they are making it legal to buy/sell/mine/use.

@stompix UK has indirectly legalised bitcoins, and has used clever words to cover it up by claiming crypto’s are not money. I also liked the loophole where people can mine and hodl bitcoins, but won’t need to pay taxes on it. If you’re residing there then it’s best to ask your financial advisor regarding local bitcoin fees, but reading the quotesd text I feel you can deduct it.

BrewMaster

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There is trouble abrewing

Quote from: stompix on November 04, 2019, 07:19:10 AM

As for the whole crypto is not money, nobody really gives a damn about semantics as long as they are making it legal to buy/sell/mine/use.

it is only the tax authorities and they are categorizing bitcoin as "not money" because it makes it possible and a lot easier for them to then categorize it under their tax laws.
if they said "bitcoin is money" then they either have to don't tax bitcoin or tax any other form of money too. like when you convert your fiat to PayPal you would have to pay taxes!

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Full text here:
https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-tax-for-businesses#trading-in-exchange-tokens

A few things besides the whole trade exchange tax stuff is interesting and I do like it, one is about home (hobby) mining

Quote

For example, using a home computer while it has spare capacity to mine tokens would not normally amount to a trade. However, purchasing a bank of dedicated computers to mine tokens for an expected net profit (taking account the cost of equipment and electricity) would probably constitute trading activity. If the mining activity does not amount to a trade, the value (at the time of receipt) of any cryptoassets awarded for successful mining will generally be taxable as miscellaneous income, with any appropriate expenses reducing the amount chargeable.

If the miner keeps the awarded assets, they may have to pay Capital Gains Tax or Corporation Tax on chargeable gains when they later dispose of them.

So, there is a room for a bit of mining avoiding taxes while keeping a low profile, especially since there will be no VAT on crypto sales.

Also, there is a paragraph of allowable costs:

Quote

Certain costs can be allowed as a deduction when calculating if there’s a gain or loss, which include:
<>
advertising for a purchaser or a vendor

Does this mean you can deduct localbitcoin fees?
In all, it seems like they've done their homework quite diligently, they are covering everything, even hard and soft forks and airdrop.

As for the whole crypto is not money, nobody really gives a damn about semantics as long as they are making it legal to buy/sell/mine/use.

vennali

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#SWGT CERTIK Audited

The United Kingdom’s tax, payments and customs authority, Her Majesty’s Revenue and Customs (HMRC), has updated its cryptocurrency taxation guidelines for businesses and individuals.

On Nov. 1, the U.K. government tax agency, which manages taxes alongside other financial policies, released tax guidance updates that further clarify its stance on how businesses and individuals involved with cryptocurrency will be taxed.

Read more HERE

Topic: British Tax Authority Updates Cryptocurrency Guidelines, Says It Is Not Money - page 2. (Read 335 times)