Tax & Hoarded / Hodl Coins

[rjclarke2000]

What pisses me off is the UK government are not interested in Bitcoin...


But if anyone makes a big profit from btc they are happy to have a slice of what you've made.

Wankers


What if you never convert to fiat? What happens then?

I am thinking years down the line where 1-5 btc could possibly buy a decent house and you buy it with btc and not fiat. If you are holding 50btc + do you not get taxed on it then?

[pereira4]

What pisses me off is the UK government are not interested in Bitcoin...


But if anyone makes a big profit from btc they are happy to have a slice of what you've made.

Wankers


What if you never convert to fiat? What happens then?

I am thinking years down the line where 1-5 btc could possibly buy a decent house and you buy it with btc and not fiat. If you are holding 50btc + do you not get taxed on it then?

Anyone correct me if im wrong but, if you never leave the system as in convert in BTC, it's impossible that they know you hold BTC.
And even if you cash out, if you send your coins to an en empty wallet to guarantee when you pay coins that are inside your "main" wallet don't get used, and considering you've mixed these coins before sending them there... they can't know you own more than what you spent.
If you do this and buy a 300 USD smartphone for example... what the fuck they gonna do about it?
Even if you keep doing this monthly, what are the chances that you get taxed the total?

About buying a house directly with BTC.. wouldn't the gov still know? because if you go to anything that requires giving your home direction, like healthcare, education or work, whatever, someone would know where you live, and you are supossed to list all of your properties.

Someone please let us know how all this shit works. I want to spend some of BTC but im worried about things like that (im not gonna buy a fcking house I wish, but I want to buy a small gift to celebrate my bitcoin gains you know).

[chmod755]

What pisses me off is the UK government are not interested in Bitcoin...


But if anyone makes a big profit from btc they are happy to have a slice of what you've made.

The UK government is actively researching Bitcoin and has very easy regulations compared to most countries.

They are taking a slice of your fiat money if you decide to convert your gains to GBP.

[neurotypical]

What pisses me off is the UK government are not interested in Bitcoin...


But if anyone makes a big profit from btc they are happy to have a slice of what you've made.

The UK government is actively researching Bitcoin and has very easy regulations compared to most countries.

They are taking a slice of your fiat money if you decide to convert your gains to GBP.

They aren't that easy tho. It should be VAT free, like I think spain, which treats BTC as just another foreign currency as it should. I don't know if there are other annoyances, but thats pretty annoying within itself.

My question is, how would the gov take that slide of your fiat money, how would they know exactly?

[chmod755]

They aren't that easy tho.  It should be VAT free

Bitcoin is VAT free in the UK:

when Bitcoin is exchanged for Sterling or for foreign currencies, such as Euros or Dollars, no VAT will be due on the value of the Bitcoins themselves
...
However, in all instances, 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

Source: https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

[qiwoman2]

It all depends on where you live and what you do with your coins. If my Husband say gives me a portion of his wages to invest which has already been taxed and I earn profits form that investment, then at some point I will declare and pay tax on the profit and not the principal as that has already been taxed, well that's what I think is reasonable anyway.