Topic: Profits from gambling with crypto (UK tax question) (Read 108 times)
What is clear is that when there is a bitcoin transaction confirmation, maybe you are sure to get a taxpayer as the rules in your country, but if the winnings are still on the gambling site there will be no tax imposed on you ...
The biggest question is whether the crypto gambling site is regulated ?
As long as the gambling site has a international license such as a Curacao license and the country recognizes those licenses I don't think his gambling winnings will be an issue, I don't think UK has a similar prohibition just like the US with regards to online gambling.
@OP if you keep track with your gambling winnings this is a good start as you will need to know the market value of your winnings on each date as this will determine if you have a capital gain or not by the time you have sold it you must also provide as much proof as you can so there will be no discrepancies or additional questions coming from your taxing authority.
what happens for the btc that I have received from transactions?
To clarify, all profits from currency that is converted from btc to gbp (in my case), is taxable in that financial year.
what happens for the btc that I have received from transactions?
what happens for the btc that I have received from transactions?
Hi All,
I have been profitable in sports betting on crypto websites. In the UK, gambling is tax-free, but crypto profits are not. Where do I stand with HMRC?
Obviously my withdrawals from my crypto wallet are higher than my deposits (indicating profits), but these profits are mostly from gambling except for the increases in my various crypto.
If I keep detailed reports of my sports betting winnings am I covered in terms of not being taxed, or is this more complex than that?
Thanks
Profits from crypto gambling websites fall under the category of capital gains as far as I know in UK so you are supposed to pay taxes when you convert them into fiat so yes you should report the sportbetting winnings while reporting your tax. I have been profitable in sports betting on crypto websites. In the UK, gambling is tax-free, but crypto profits are not. Where do I stand with HMRC?
Obviously my withdrawals from my crypto wallet are higher than my deposits (indicating profits), but these profits are mostly from gambling except for the increases in my various crypto.
If I keep detailed reports of my sports betting winnings am I covered in terms of not being taxed, or is this more complex than that?
Thanks
If you have not fixed the profit from the cryptocurrency, then of course not. If you have withdrawn the income and turned it into FIAT, then it is obvious that you will have to pay, otherwise there will be problems and unnecessary questions that you do not need. I advise you to fix it at the end of the tax period once, so as not to get confused in the income tax return. The ideal solution would be to contact a tax consultant who works with clients who trade in cryptocurrency. The very first way out of the situation that comes to mind.
So would clear documentation of my bets, showing a profit be enough to show HMRC (assuming the betting websites are regulated)??
Yes, you should be able to find out if the site is regulated by checking the gambling commission's website.
If you sell your initial funds back for a profit, you'll have to pay capital gains on that though.
The biggest question is whether the crypto gambling site is regulated ? [...]
Good question ... given the fact that most gambling sites, or rather the companies behind them, are not residents of countries where there is cryptocurrency regulation, (but thinking logically, that the same rule applies to cryptocurrency wins as for regular wins). If you're curious about the details, here's a cool crypto tax material and calculator ("cryptocurrency tax software built to save you time & maximize your refund").
So would clear documentation of my bets, showing a profit be enough to show HMRC (assuming the betting websites are regulated)??
The biggest question is whether the crypto gambling site is regulated ? There’s no clear cut answer , but if the gambling site is not regulated you can’t apply the normal fiat gambling HMRC rules. So it would be classed as capital gains generally . Compare the gambling win with the free airdrop scenario - it would be just classed as a capital gain or loss.
It’s a real pain as there’s no specific rule/regulation at the moment!
It’s a real pain as there’s no specific rule/regulation at the moment!
There's a chance you've made a capital gain on your crypto and this is directly dependent on if you've sold any.
Gambling profits aren't taxable though, you're right on that one so you don't need to declare those events. Just anything you've gained by selling crypto back to cash (up to the equivelant amount of what you bought in crypto value).
Gambling profits aren't taxable though, you're right on that one so you don't need to declare those events. Just anything you've gained by selling crypto back to cash (up to the equivelant amount of what you bought in crypto value).
Hi All,
I have been profitable in sports betting on crypto websites. In the UK, gambling is tax-free, but crypto profits are not. Where do I stand with HMRC?
Obviously my withdrawals from my crypto wallet are higher than my deposits (indicating profits), but these profits are mostly from gambling except for the increases in my various crypto.
If I keep detailed reports of my sports betting winnings am I covered in terms of not being taxed, or is this more complex than that?
Thanks
I have been profitable in sports betting on crypto websites. In the UK, gambling is tax-free, but crypto profits are not. Where do I stand with HMRC?
Obviously my withdrawals from my crypto wallet are higher than my deposits (indicating profits), but these profits are mostly from gambling except for the increases in my various crypto.
If I keep detailed reports of my sports betting winnings am I covered in terms of not being taxed, or is this more complex than that?
Thanks
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