Bitcoin Forum

Has anybody sold BTC for CASH in the United Kingdom?

 - How do you pay/calculate your tax?

 - How does your Bank react?

 - Do you need a solicitor?

 - Have you ever had any trouble with Law enforcement, because of Bitcoin trades?

Please post comments here, we need to read everybody's experience

Isn't this topic interesting?  ???  ;)

If you are selling bitcoins for cash, what role does the bank have to play?  ;)
There will be no difference in the way you pay or calculate your tax. If the amounts are large, I suspect there will be additional requirements towards anti-money laundering.

Treat it like you are selling something at a yard sale/Craigslist ad.

If it's a few bucks, no one cares. If you have substantial income from it, pay income tax on it.

The bank will react the same way it would from a yard sale/Craiglist ad. If you go dump in $20k they will care, if you put in $20 they won't. They probably have a set amount that makes them declare it to whatever your IRS entity is there. If you deposit money regularly under the limit but substantial, with intervals that look similar, they'll notice.

Careful because you can get ripped off, just read this forum, it happens. When you get ripped off the police can do exactly nothing for you that's positive; they might press charges assuming you were up to something bad. Consider an escrow service.

This topic seems to be a grey area. None of the BTC sellers will ever give a straight answer.

I´m not from the UK, but here are some general rules for dealing with Bitcoin withdrawals to CASH:
-if you are transferring a big amount, inform your contact person of your bank in advance
(there are numerous cases where people didn´t do that and did get their account locked, which
only causes hassle!)
-if you are selling only a small amount and very unregularly, you probably can get away without paying taxes
-depending on your situation and the tax laws in the UK you can make use of tax exempt amounts
-depending on what you want to do with the cash, you might consider purchasing in BTC
directly (e.g. using a service like Gyft to order from Amazon)

As far as i know there's nothing like the money transmitter regs as in the US.

Coinfloor registered voluntarily as some sort of foreign exchange bureau i think.

If you use your bank and they find out they'll shut your account. If it isn't because you're using it for business, which is usually the reason, it'll be because of bitcoin.

The tax is your trading profit just like everything else. It'll be income rather than capital gains.

I've seen a couple people say speak with the bank manager first but how can you do that if UK banks are generally anti crypto? If you move small amounts it looks pretty bad also some people have said.   Now with kraken out of the picutre options are also limited.  Some people have suggest coinfloor, any thoughts?

GBP at Kraken was always out the picture. Their GBP market was an expensive minuscule joke. Open an account at Fidor and use the Kraken EUR market.

Coinfloor have a good rep but they still bank in Europe so they'll be more sluggish than EUR despite being GBP. You have to wire to Poland or something.

ok so once you withdraw EUR to fidor what you do then if you want GBP in your regular llyods/halifax etc bank? do fidor convert to GBP? or do you suggest holding large sums of euro fiat in fidor for long periods? How do we know fidor are a good bet?

Fidor will be covered by the bog standard banking guarantees. We're not talking exchange level patheticness here. It's a bank.

You will be able to convert via Fidor and send it elsewhere.

Ok nice 1 thanks

Actually, it looks like I was talking out my arse. You can send SEPA via Fidor, you can't receive it seemingly.

https://www.fidorbank.uk/faq

https://community.fidorbank.uk/smart_questions/does-fidor-bank-allow-foreign

Fine for buying. Not much cop for selling.

Yeah i was just reading through that. So you have to either get euros sent to your UK bank and get raped on exchange rates + potentially have your account shut down or open a UK euro bank account and then get stuck with euros until you can figure out a way to exchange for GBP.   Maybe kraken can offer a GBP withdraw option ?

Has anybody tried using coinfloor?

Hi GreedyJohn,

Did you manage to find an answer to your original question? I would be interested.

Kind Regards

There are lots of users and plenty of feedback here - https://www.reddit.com/r/BitcoinUK/

It's well worth a search through.

https://www.reddit.com/user/Mark_Coinfloor  is a Coinfloor founder I believe.

What's the problem? What is not in Britain to convert euros to British pounds? I think it's not a problem. Why you should be problems with law enforcement? Bitcoin transactions are made online and it is generally not in the UK. If you are afraid of the tax authorities can open a company in an offshore zone and send all the income there. You will receive clean money.

Selling bitcoin isn't quite as straightforward as buying bitcoin, but fortunately CoinDesk is here to help. This guide will give you all the information you need to cash out your digital currency. When deciding how to sell your bitcoin, you first need to consider which method best suits your situation: selling bitcoin online or selling bitcoin in person. Each option has its own advantages and disadvantages.

bitcoin is free coin so you only need seller and buyer not need bank , tax (only transaction fee)and will be easy to get cash if your country support bitcoin