Bitcoin and cryptocurrency tax questions and answers

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In HMRC guidance in Revenue and Customs Brief 9, they have specified that bitcoin profits have to be reviewed case by case with simple interpretation. The general guidance is:. I have some bitcoins that I bought in bitcoin and cryptocurrency tax questions and answers, now I want to sell them. I have used my CGT allowance for the year but my wife has not.

How should I do? In this case, you can transfer some bitcoins to your wife and she can then sell them for CGT purposes. She becomes entitled to the net sale proceeds. I have started a company in Panama. I am declared as the director not a nominee and also with the bank account for the company.

I'm not trying to hide anything. What I would like to do is move Bitcoin assets this is the classification HMRC bitcoin and cryptocurrency tax questions and answers called it to the company, hold it here and then possibly draw a wage each year in years to come.

If you give your bitcoin to your company, it will trigger a capital gain. The best way is to lend Panama company your bitcoins. That can be withdrawn from the company at any time with no tax consequences.

You don't get taxed again on the same money. If my company accept bitcoins as payment, do I have to pay taxes on that? First, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for Bitcoin or other similar cryptocurrency. The value of the supply of goods or services on which VAT is due will be the sterling value of the cryptocurrency at the point the transaction takes place. When being paid in Bitcoins and other bitcoin and cryptocurrency tax questions and answers currencies then you would need a record of the holdings and report any fluctuation in value as at your financial year end.

Realised gains and losses are subject to corporation tax. The information contained in this site is for general guidance on matters of interest only. You should contact your tax accountant before making any decision. I think this is something people should be discussing more. There are a couple of things I don't understand. Each case will be considered on the basis of its own individual facts and circumstances.

The relevant legislation and case law will be applied to determine the correct tax treatment. Therefore, depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable.

What constitutes "so highly speculative"? Is an ICO investment so highly speculative that it is not taxable?

CT and CGT - bitcoin and cryptocurrency tax questions and answers 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. What does "within trading profits or otherwise within the loan relationship rules" mean?

The general guidance is: Authors get paid when people like you upvote their post. Also from the HMRC brief:

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