In my country bitcoin is not in any way regulated by law. It is still not recognized so no taxes to pay, but once you change the currency further actions fall under the tax base.
Does it mean that you are not supposed to pay taxes if that is not regulated by law in your country,i thought you should file those incomes while filing for your taxes annually,i am yet to file my taxes for the bitcoin returns because i am yet to sell my major share of coins and when i do that i will be thinking about that because i do not want the government to come knocking my doors. 
Topic: tax on bitcoin profits in United Kingdom? [Solved] - page 2. (Read 18676 times)
if your turnover is over x/year, you'd have to form a company or sole tradership and tell the HMRC about that
as to whether you need some sort of money transmitter license, probably nobody knows, even the relevant regulatory body
(in USA they're always prosecuting traders for no money transmitter license)
ask here https://bitcointalk.org/index.php?board=8.0
see if you can't get in touch with head of Localbitcoins UK for advice
I'm sure there are uk lawyers who know sth re crypto
write to the Minister for his opinion - a 'note from Stalin' keeps the police away
if you go ahead in the open, with permissions etc, you must still keep your bank out of the picture and never mention the word 'bitcoin'. someone will just get spooked and freeze your account to be on the safe side or vindictively
as to whether you need some sort of money transmitter license, probably nobody knows, even the relevant regulatory body
(in USA they're always prosecuting traders for no money transmitter license)
ask here https://bitcointalk.org/index.php?board=8.0
see if you can't get in touch with head of Localbitcoins UK for advice
I'm sure there are uk lawyers who know sth re crypto
write to the Minister for his opinion - a 'note from Stalin' keeps the police away
if you go ahead in the open, with permissions etc, you must still keep your bank out of the picture and never mention the word 'bitcoin'. someone will just get spooked and freeze your account to be on the safe side or vindictively
Thank you very much.
I can imagine that when doing localbitcoin trades or any trades that are not on an exchange (like bitstamp, bitfinex, kraken and so on), goverment can argue that you need money transmitter licencse+company (that's why localbitcoins is blocked in germany).
But do you have sources if a company is also needed when trading high volume at exchanges mentioned above? No localbitcoins, no private trades and only trading with own money and not for third parties. If this would need a company too, nearly every single bitcointrader would be affected.
Where could I get information like this?
The problem is that I need a 100% legal answer to this question... and even most tax accountants are not able to answer this, since they don't know bitcoin.
As I know Bitcoin profit is not admited in any country yet, so there is no taxes from this kind of earnings. I am from Russia and I heard here in the project national crypto currency. I think when this project will be realise all citizens will have to pay that kind of tax from their crypto profit.
In most countries you have to pay taxes on profits you make through bitcoin, even if it is not regulated. The kind of tax differs and there are even countries without tax on profits. In my country bitcoin is not in any way regulated by law. It is still not recognized so no taxes to pay, but once you change the currency further actions fall under the tax base.
As I know Bitcoin profit is not admited in any country yet, so there is no taxes from this kind of earnings. I am from Russia and I heard here in the project national crypto currency. I think when this project will be realise all citizens will have to pay that kind of tax from their crypto profit. 
if your turnover is over x/year, you'd have to form a company or sole tradership and tell the HMRC about that
as to whether you need some sort of money transmitter license, probably nobody knows, even the relevant regulatory body
(in USA they're always prosecuting traders for no money transmitter license)
ask here https://bitcointalk.org/index.php?board=8.0
see if you can't get in touch with head of Localbitcoins UK for advice
I'm sure there are uk lawyers who know sth re crypto
write to the Minister for his opinion - a 'note from Stalin' keeps the police away
if you go ahead in the open, with permissions etc, you must still keep your bank out of the picture and never mention the word 'bitcoin'. someone will just get spooked and freeze your account to be on the safe side or vindictively
as to whether you need some sort of money transmitter license, probably nobody knows, even the relevant regulatory body
(in USA they're always prosecuting traders for no money transmitter license)
ask here https://bitcointalk.org/index.php?board=8.0
see if you can't get in touch with head of Localbitcoins UK for advice
I'm sure there are uk lawyers who know sth re crypto
write to the Minister for his opinion - a 'note from Stalin' keeps the police away
if you go ahead in the open, with permissions etc, you must still keep your bank out of the picture and never mention the word 'bitcoin'. someone will just get spooked and freeze your account to be on the safe side or vindictively
WTF is that? This is bitcoin guys remember, decentralized and cannot be control by any group or government. Not taxable!
If you still pay tax for this, you're stupid. Clearly.
I think OP is talking about exchanging bitcoins in real money. If you still pay tax for this, you're stupid. Clearly.
Bitcoin itself is not taxable, but when you exchange it to money and withdraw it to your bank account, i am sure you have to pay tax.
If you buy a house i am sure they will ask you to prove where money came from. You can't really say to them "go fck yourself, bitcoin is decentralized and you cant' control it"
Not sure about the United Kingdom as they still follow the European Union rules when it comes to finance, but in most countries, bitcoin is not taxed as it is not recognized as a currency in the first place.
But, the moment you convert your bitcoin to any accepted currency, you need to pay tax on it as it is considered to be an income in the recognized currency.
But, the moment you convert your bitcoin to any accepted currency, you need to pay tax on it as it is considered to be an income in the recognized currency.
You can daytrade in the stock market without needing a company so I don't think you would need one for bitcoin. Sorry I don't have that much knowledge personally.
thanks.A tax accountant told me that for bitcoin trading in UK I most likey need a company, since daytrading and private asset management would also be considered being commercial (is commercial the right word?)
But unfortunately most tax accountants don't know much about bitcoin and are even telling wrong stuff. That's why I would like to hear general opinion here.
Can't imagine that regular bitcointraders in UK all have a company
@javalemcgee:
Sry but I don't want to go to jail because of this...
WTF is that? This is bitcoin guys remember, decentralized and cannot be control by any group or government. Not taxable!
If you still pay tax for this, you're stupid. Clearly.
If you still pay tax for this, you're stupid. Clearly.
You can read about it on the government's website.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
It doesn't say that you have to pay VAT on your bitcoin, it says if you buy and sell goods and services using bitcoin you have to pay VAT.
Capital gains tax is the only relevant one.
OP read the article.
So the only relevant part is this: ?
Quote
Chargeable gains: CT and CGT - if a profit or loss on a currency contract is not within trading profits or otherwise within the loan relationship rules, it would normally be taxable as a chargeable gain or allowable as a loss for CT or CGT purposes. Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual or, for CT on chargeable gains if they accrue to a company.
Okay, capital gains.
What about forcing you to be a company? If daytrading and private active asset management needs a company, I would expect that also bitcoin-daytrading would need a company. Or is it not true?
You can daytrade in the stock market without needing a company so I don't think you would need one for bitcoin. Sorry I don't have that much knowledge personally.
You can read about it on the government's website.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
It doesn't say that you have to pay VAT on your bitcoin, it says if you buy and sell goods and services using bitcoin you have to pay VAT.
Capital gains tax is the only relevant one.
OP read the article.
So the only relevant part is this: ?
Quote
Chargeable gains: CT and CGT - if a profit or loss on a currency contract is not within trading profits or otherwise within the loan relationship rules, it would normally be taxable as a chargeable gain or allowable as a loss for CT or CGT purposes. Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual or, for CT on chargeable gains if they accrue to a company.
Okay, capital gains.
What about forcing you to be a company? If daytrading and private active asset management needs a company, I would expect that also bitcoin-daytrading would need a company. Or is it not true?
You can read about it on the government's website.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
It doesn't say that you have to pay VAT on your bitcoin, it says if you buy and sell goods and services using bitcoin you have to pay VAT.
Capital gains tax is the only relevant one.
OP read the article.
You can read about it on the government's website.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
thank you.In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
VAT, really??
That would mean that there is not a single bitcointrader in whole UK, since everyone would make losses just because of VAT?
(buying a btc for 1000€ and selling it for 1010€, would still be a loss when you have to pay VAT on buying and on selling)
edit:
Just read one sentence in this article:
Quote
As an EU tax, the VAT treatment for cryptocurrencies adopted by the UK must be consistent with any treatment that may eventually be implemented across the EU.
Since EU said there is no VAT on bitcoin, I think UK also says there is no VAT now, right? The article is quite old, 3 March 2014 , while the VAT decision was at 22 November 2015
You can read about it on the government's website.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
In the UK, Bitcoin is basically treated as a commodity which is subject to VAT, and to capital gains tax when converted to fiat.
HMRC are pretty incompetent though, and they couldn't catch a cold. If you withdraw a large amount to a bank you might have to declare it.
In my country bitcoin is not in any way regulated by law. It is still not recognized so no taxes to pay, but once you change the currency further actions fall under the tax base.
Hi 
I would like to know how profits from regular bitcoin trading are taxed in UK.
Just regular trading on bitcoin exchanges.
Hold the coins not longer then 1 year, in case this does matter.
In germany selling btc is a "private sell", so profit is added to your income and you pay income tax, if you holded the btc not longer than one year.
If holded longer than one year, it is tax free.
In alot of other countries it is very similar, except that holding more than one year will only make tax cheaper, not tax free.
How is it in UK ?
And more important:
Is every regular bitcointrader commercial, so has to make a company?! Cause I was told in UK for "Daytrading" and also "active asset management" you need a company.
edit:
sry if this is wrong section. The bitcoin/legal section was hidden for some reason, so I thought Economics does more fit than altcoin and trading discussion
edit2:
SOLVED:
https://bitcointalksearch.org/topic/m.19571753
I would like to know how profits from regular bitcoin trading are taxed in UK.
Just regular trading on bitcoin exchanges.
Hold the coins not longer then 1 year, in case this does matter.
In germany selling btc is a "private sell", so profit is added to your income and you pay income tax, if you holded the btc not longer than one year.
If holded longer than one year, it is tax free.
In alot of other countries it is very similar, except that holding more than one year will only make tax cheaper, not tax free.
How is it in UK ?
And more important:
Is every regular bitcointrader commercial, so has to make a company?! Cause I was told in UK for "Daytrading" and also "active asset management" you need a company.
edit:
sry if this is wrong section. The bitcoin/legal section was hidden for some reason, so I thought Economics does more fit than altcoin and trading discussion
edit2:
SOLVED:
https://bitcointalksearch.org/topic/m.19571753
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