Do we need to pay tax in UK for converting bitcoin to fiat

[garima]

Hello Do we need to pay tax when we need to convert bitcoin to fiat currency and withdraw to our bank account

[1715198077]

1715198077

[1715198077]

1715198077

[1715198077]

1715198077

[eternalgloom]

I would assume that you'd have to pay capital gains tax in the UK on the profit you make with Bitcoin, yes.
Have found a few resources that would indicate so, I'll share them below.

These articles mention that a new law is in the making, so I'm not completely sure how it's taxed now, but I would assume through capital gains tax.

http://www.telegraph.co.uk/tax/capital-gains/do-have-pay-tax-bitcoin-profits-will-happen-dont/ (paywall)
https://www.express.co.uk/finance/city/897066/HMRC-Bitcoin-warning-Cryptocurrency-profits-to-be-TAXED

[garima]

IS the tax 20% capital tax charegable on bitcoin profit and any amount exempted .

[eternalgloom]

IS the tax 20% capital tax charegable on bitcoin profit and any amount exempted .

Seems like you'd only have to pay capital gains tax on it when you convert it back to fiat.
I've found another source which explains this more in dept, though you should really talk to an accountant if you want to be completely sure.

If the bitcoins have been purchased HMRC will regard any increase in value as being liable to capital gains tax. Tax will only crystallise when the bitcoins are converted into another currency, be it sterling or dollars or even another cryptocurrency. Capital gains tax is currently charges at ten per cent or 20 per cent (or a mixture ) depending on the level of the taxpayer’s other income.

http://www.thisismoney.co.uk/money/experts/article-5019947/Do-pay-tax-sell-bitcoin-big-profit.html

[crypto_the_river]

IS the tax 20% capital tax charegable on bitcoin profit and any amount exempted .

As I read you may trade without taxes at sum only £11,300 per annum.
You may find more information here: https://www.express.co.uk/finance/city/897066/HMRC-Bitcoin-warning-Cryptocurrency-profits-to-be-TAXED

[devarajdp]

Most countries consider Bitcoin and crypto-currencies as capital assets, and so any gains made are taxed like capital gains. So if you make profits from selling your coins, those profits are taxed. If you make losses, you may be able to deduct the losses and reduce your taxes.