Topic: From UK need advice on how do I avoid getting into trouble from tax office govt? - page 2. (Read 313 times)

Ok im getting to understand more, do you know which exchanges allows withdrawals to multiple bank accounts?

Just to clarify it is £11k limit per year? If so that sucks if I was a bitcoin millionaire who like to cash out.

If only more places and shops accept bitcoin so no need to cash out you know what I mean. Like I can walk straight into a lambo dealership and pay directly with bitcoin.

They are keeping most of their assets in BTC. Take a look at some of the richest like the W twins. They aren't turning anything to fiat.
I don't know how the millionaires in the UK are doing it, but If I had a couple millions I'd consider moving abroad and buying a piece of land on some tropical island, away from the wars, migration, pollution and politics.



Sporadic in time intervals. The safe amount is probably up to £11k per account from the same source per year. That doesn't mean you can't send more. Chances are you won't be flagged, chances are you will be but no authorities will take action, or they will but only to check if it was included in your tax report. I wouldn't worry too much.

If you were really scared of the banks and authorities and at the same time wanted to go the legal way (money to a bank account, reporting income) you could always set up 2 or 3 separate bank accounts and divide your coins between 2 or 3 exchanges. Then sell below £11k worth of coins on each of the exchanges and move it to your banks. Withdraw cash and put it in a deposit box or a safe. Note that this is an overkill option for those who don't trust banks (like I do after the Cyprus bailout) and want to have total control of their money.

Much appreciated for your valuable response there. Ok if we can never be sure with banks like you mentioned that what you suggest to get my money safely? How are these bitcoin millionaires doing it?

How you define sporadic and please give successful examples of this for easier understanding. You mean sporadic in £amounts or time intervals?

It depends. There are EU regulations that state when the bank has to report transfers. AFAIK those are sums over €15k (or multiple transfers from the same source that exceed this amount). Even if you get reported there's no certainty the tax office or another government agency that checks those reports will take interest. They are getting a large number of these reports every month and only a small % is being checked. I read that in the US transfers of over $10000 get flagged, so like I said it depends on the country. I've also read that there were cases where banks blacklisted some exchanges because they were suspecting them of money laundering. That's why you can never be sure with these things.
It's even worse when you're bringing cash into the bank. They can get suspicious of even much smaller sums than €15k and could ask where you got it from. (crazy!)
I'm pretty sure that transfers smaller than personal allowance (£11000) aren't being reported anywhere or flagged as long as they are sporadic. If you keep getting £2000 every single month, on top of your salary, it will eventually catch someone's attention.

Hi thank you for your quick response, to clarify what max amount in £gbp do you recommend for withdrawal from exchange to a normal bank account to prevent the hassle of being flagged on the bank's computers resulting in temporary freezure of the bank account? Do you mean smaller separate withdrawals under £45k instead of the whole lump sum amount in one go?

If I do the multiple withdrawals smaller amounts approach won't that unnecessary flag the exchanges computers and bank computers for suspicious activity or do is there a recommended time interval that I should wait between withdrawals from exchange?

Also does the bank computers automatically report to HMRC for what deposit amounts?

You as a UK citizen are obliged to follow its laws. The exchange, which is registered abroad, follows the laws of that country. In other words, you don't declare income in the US as you aren't a citizen and aren't residing there.


They don't. An exchange reports its own profits, it doesn't do it for its clients. The clients are obliged to file tax reports themselves. If the tax office ask an exchange about the details of a client the exchange can refuse to comply. It happens frequently because this is a breach of data protection laws and a tax office has no authority to ask for that. Such demand has to be approved by a judge first. This means that coinbase will not contact your local tax office first, but they can send them data if asked.


Possibly. Huge sums like that will be flagged immediately and could be temporarily frozen. They are used to huge money going through corporate accounts but not private ones and the recently established anti terrorist laws demand they verify the origin of the money.
Why would you want to transfer everything at one go to a single account when you could exchange < £45k a year, pay 20% tax and be done with it?

I am in the same position. Being a UK resident where crypto gains are treated as Capital Gain Tax (for most people) leaves me completely puzzled. What happens if my btc are in my Ledger Nano and I use them to buy that mythical Lambo? in theory I should declare a capital gain but the mechanics of it are mind-bending.

Every transaction from btc to ltc to ada back to btc , etc , etc.... then to my cold wallet then a year later I buy the Lambo... Jeee!!! how do I declare that???

In essence. I buy 1 btc today at 15K. Send it to my cold wallet. Next year it is worth 50K (hey I'm an optimist!)...  How does HMRC (IRS here in the UK) know anything about this?

If I had a couple of mills I would be tempted to have a holiday in Panama with my Nano S in my pocket.. just saying... 

We didn't  even know how those bitcoin millionaires did able to cash out their funds without any troubles. I'm sure there was but we don't know which way they used on not for them to experience problem. If you do really have doubts on this one then the best choice or thing to do is consult a lawyer regarding this since they do know almost everything when it comes to your countries law and the things should be avoided and to be consider when it comes to taxation matters.

Hi,

I don't know about the tax laws or bank laws in UK however instead of remaining ignorant I like to know what are the govt laws, bank laws and tax laws of bitcoin sales in UK and who do I declare it to?

I do not want to get into trouble for money laundering or tax evasion etc. so best to be safe and abide to the laws to avoid profits being confiscated you know what I mean.

Lets say for example I invested £10 into bitcoin several years and now I am a millionaire by cashing out those bitcoins to fiat money now. The £millions are on a exchange just gotta transfer the £millions to my bank account.

Just a average bank account not a private or swiss bank account or offshore bank account.

The questions are:

If an exchange is in a different country to where I don't live then am I obliged to follow that country laws. For example coinbase is USA based and I live in UK.
All accounts and data are on a online computer databases nowadays where all info can be found out with just a click of a button or computer software alerts being triggered off.

How does a USA exchange like coinbase report back accounts to UK government?

Once I transfer the £millions to my bank account from exchange then will my bank account freeze my £millions and treat me like a criminal?

I don't understand how all these bitcoin millionaires buying Lambos easily or what did they do get their profits smoothly without interruptions so they can buy those Lambos?

What are the limits etc. that you must declare in regards to bitcoin?

Thanks,