CRYPTO-CURRENCY TAX IN THE UNITED KINGDOM (UK - GREAT BRITAIN)

[QUESTIONMAN2022]

Hi everybody,

I have some questions for the crypto taxpayers from the United Kingdom (Great Britain). If possible, I need answers from experienced/veteran taxpayers, tax professional and Legal experts that visit this forum:

QUESTIONS:
A - Does anybody have copies of the old HMRC crypto tax "Guidance" from the year 2014?

B - When did the United Kingdom begin to tax crypto-to-crypto transactions?

C- HMRC published its policy paper "Tax on cryptoassets" on 19th December 2018. This is the "ORIGINAL DATE".

Read the Notes below, and tell me if the assumptions made below are correct (or wrong)

Before 19th December 2018
All crypto-to-crypto transactions before this policy paper was published (19th December 2018) were not to be taxed in the UK - tax was only paid when crypto was converted to British Pounds (GBP- fiat).

After 19th December 2018
All crypto-to-crypto transactions are taxable events.

[Mbitr]

Hi - hopefully I can help a bit .
Here’s where you can find the “Guidance notes “ from 2014

https://webarchive.nationalarchives.gov.uk/ukgwa/20160121032200/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

Dates for tax can be rather tricky and just because new rulings come in at a certain date , it doesn’t that these rulings can’t be used retrospectively, ie, anybody’s past tax returns may be looked at again using the new guidelines and you may well have to pay tax on old returns !

Anyway - currently all crypto to crypto , crypto to fiat , fiat to crypto are DEFINITELY a now deemed taxable events.
Hope this helps a bit 

[QUESTIONMAN2022]

Hi - hopefully I can help a bit .
Here’s where you can find the “Guidance notes “ from 2014

https://webarchive.nationalarchives.gov.uk/ukgwa/20160121032200/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

Dates for tax can be rather tricky and just because new rulings come in at a certain date , it doesn’t that these rulings can’t be used retrospectively, ie, anybody’s past tax returns may be looked at again using the new guidelines and you may well have to pay tax on old returns !

Anyway - currently all crypto to crypto , crypto to fiat , fiat to crypto are DEFINITELY a now deemed taxable events.
Hope this helps a bit  

Thanks for the reply.

Before 2018, there was no requirement to keep DETAILED RECORDS of ALL crypto transactions. (This might be because crypto still had negligible prices before the 2017/2018 bull run).
- Many of us have too many transactions from failed "pump and dump" projects, with transaction history being lost on exchanges that have closed down.

-There was no KYC/AML regulations and crypto exchanges were not treated like banks/Financial institutions

Before 2018, the position commonly observed by most people was that tax was payable only when BTC (crypto) was converted to fiat (GBP).
I remember that it was almost impossible to even convert crypto to GBP before 2018. This was the same year when Coinbase UK began to support crypto to GBP transactions.

NOTE (REGARDING CRYPTO TRADES BEFORE 2018)
I understand that we should all have the transaction history of our initial BTC purchases

However, problems arise when we cannot prove that we lost crypto, or that we sold crypto at a serious loss, due to exchanges going out of business

[Mbitr]

I suppose, if the HMRC ever come back o you for past returns and ask for any evidence , then you can only give them whatever proof or evidence you have. Any proof of any buys, profits, losses , transactions will help you . I’m sure any ambiguity that were in the HMRC guidelines was there on purpose !!
Sorry I’m not helping you that much and please this is NOT financial advice.

[QUESTIONMAN2022]

I suppose, if the HMRC ever come back o you for past returns and ask for any evidence , then you can only give them whatever proof or evidence you have. Any proof of any buys, profits, losses , transactions will help you . I’m sure any ambiguity that were in the HMRC guidelines was there on purpose !!
Sorry I’m not helping you that much and please this is NOT financial advice.

Thanks for the answer.

I am currently employed, but might/will lose my job soon.

However, I have crypto investments to survive and THRIVE on.

Questions:
- If I lose my job in May, then I cash out on crypto investments in June/July, will I be classified as UNEMPLOYED or SELF EMPLOYED for HMRC TAX purposes?

- If I pay Capital Gains Tax for my crypto investments that I cash out in June/July, will I still have to register and pay for National Insurance, even though I pay CGT, not INCOME TAX?

[Mbitr]

Apologies, my knowledge doesn’t stretch that far and I’m not sure what your describing is that simple - there may be a lot of other factors involved.
I’d advice seeking professional help, ie, an accountant. If I were you, id shop around- get in touch with a few accountants and see how up to date they are with crypto regulations. Don’t be afraid to ask and also see if they provide a free initial consultation

[QUESTIONMAN2022]

Apologies, my knowledge doesn’t stretch that far and I’m not sure what your describing is that simple - there may be a lot of other factors involved.
I’d advice seeking professional help, ie, an accountant. If I were you, id shop around- get in touch with a few accountants and see how up to date they are with crypto regulations. Don’t be afraid to ask and also see if they provide a free initial consultation

I understand.

There are no hidden factors involved.

I am just an "inexperienced" long time investor. I have invested for many years.

Now I am currently doing a "Voluntary Disclosure", which I will submit very soon.

I am still employed, but I will need to determine my tax classification, when I lose my job, but decide to live off my Capital Gains.

[ajochems]

When the country begins to leave tax on cryptocurrency. It will not paused by any individual.This causes huge investment lag in the traders. Because who like to pay tax for their own earnings.Britan was very big economy in the Britan in European nation.The cause of Brexit also the same in Euro Zone.Britan making huge impact in the world economy.Even the Britan citizen paying huge tax to their country.

[QUESTIONMAN2022]

Britain is strict with TAX. The PENALTIES for late payment are very severe - it could make somebody go bankrupt