Capital Gains Tax

[Bisquits]

Hello all, I am so new to this .
My cry for help is; I recently sold up my bit of a bitcoin, which went to binance. Then this was passed on blockchain.com
Blockchain are asking me to pay the uk Capital Gains tax upfront of just over 5G. Is this normal practise or is it not. They wont release the funds until I do this, which thought was a bit iffy but as I`m a newbie I thought I`d ask the people who have a better idea than me.
I live in the UK.

Sorry if this has been asked before.

Thanks in advance,

Bisquits....

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[Bttzed03]

~ Blockchain are asking me to pay the uk Capital Gains tax upfront of just over 5G. Is this normal practise or is it not.

I find this strange. Regardless of the amount, are they asking you to pay them or they're asking to deduct the supposed CGT from the sales proceeds?

• If it's the former, that would be the first I've heard of and I don't think that's right.
• If it's the latter, that's not uncommon for transactions involving capital assets but this is is still the first I've heard for crypto CGT.

It might help if you ask their support what specific tax provision in the UK that mandates blockchain.com to withhold or act as a withholding agent.

For reference, you can also check this https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals

Disclaimer: I don't know much about UK taxation on cryptocurrencies.

[LeGaulois]

First time I hear blockchain.com is responsible to collect the taxes for the Uk and the first time I hear people need to pay it upfront. How can they even know your taxpayer's rate?

Are you sure you were really on blockchain.com and not another website trying to extort more money from you? It looks like a scam to me. I've never seen someone from the UK saying he pays the tax to the exchange platform and not the taxes department

[DdmrDdmr]

<...>

It’s pretty weird. Reading through https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets#report-pay, you are responsable for making the call by either:

How to report and pay
If you need to report and pay Capital Gains Tax, you can either:
•   complete a Self Assessment tax return at the end of the tax year
•   use the Capital Gains Tax real time service to report it straight away
The amount of tax due might be different if you are not a resident in the UK.
If you complete a tax return, you must complete it in pound sterling.

Blochchain.com states the following on taxes (see https://www.blockchain.com/legal/terms):

14.2 Taxes
It is your responsibility to determine what, if any, taxes apply due to your use of Blockchain.com Services, and it is your responsibility to report and remit the correct tax to the appropriate tax authority. Blockchain.com is not responsible for determining whether taxes apply to your Virtual Currency transactions or for collecting, reporting, withholding or remitting any taxes arising from any virtual currency transactions.

Do post, on this thread, the exact URL at which you are getting the message prompting you to make an upfront tax payment. Sounds scammy.

[abokhalel2]

It seems to me that you have transferred somewhere in the wrong place and or you are not saying something correctly, because for the first time I hear about collecting payments from people. Maybe I'm wrong and is it really so?

[Febo]

Hello all, I am so new to this .
My cry for help is; I recently sold up my bit of a bitcoin, which went to binance. Then this was passed on blockchain.com
Blockchain are asking me to pay the uk Capital Gains tax upfront of just over 5G. Is this normal practise or is it not. They wont release the funds until I do this, which thought was a bit iffy but as I`m a newbie I thought I`d ask the people who have a better idea than me.
I live in the UK.

Sounds like you were phished. You entered somehow fake website that someone made and practically gave them whatever you deposited. Whatever you do do not send them more coins or whatever they want from you.

[gentlemand]

You have ended up at an impostor site. No exchange has EVER done that to my knowledge and never, ever, ever will.

Double check the domain you're on for starters.

[Bisquits]

Hello, and thank you all. I thought this was a little fishy but as a newbie to this, i thought I`d ask, good people that know. I will look at the links you have posted & take it from there, but if I need any more advice, I`ll come back & view the the forum or ask you.
Thank you for you help, much appreciated. 


Bisquit.


P.S. I`ll let you know the outcome but your right, i think there is a scam going on here.


Thanks again, B.

[akirasendo17]

so your exchange hand over your data to the authority? I think I have that coinbase also doing this if you are residing in the united kingdom, maybe this is the reason why, and I think it's not a small amount that is why they are asking for tax here is some of what I see maybe this explains it:

https://news.bitcoin.com/crypto-exchange-coinbase-hands-over-customer-data-to-uk-tax-authority/#:~:text=The%20measure%20affects%20customers%20with,the%202019%2F20%20tax%20year.&text=Coinbase%20says%20the%20HMRC%20request,U.K.%20customers%2C%20reports%20The%20Block.

Then I think if we have members there in the UK they should know this, I hope this should help.
same with what DdmrDdmr saw I also seen this one when I search it so maybe you have really transferred a lot