Hey all,
I'm currently an international uni student and started trading bitcoin (worth about £1k) for fun a few months back. I never really thought about tax (since I do not work) until I saw someone mentioning about how they are paying tax in the US. So I've read
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 and it seems like VAT is not applied when exchanged for sterling.
But I learned from others that I am liable to pay for capital gains tax for trading on exchanges such as kraken, but since I don't expect to exceed the capital gains allowance, do I still have to file tax returns on HMRC? This will require me to create an account and obtain the National Insurance Number.
Also, is the capital gains tax calculated only after I convert my bitcoins to GBP or do I still have to pay according to the GBP value of bitcoin at the end of the tax year? So even if I hold my bitcoins, do I still have to file tax returns?
Thanks
