Profits from gambling with crypto (UK tax question)

[Maslate]

If you feel uncomfortable not paying taxes on your winning, I suggest you hire an accountant to do the job for you.

The basic rule is that, if you make a profit, you pay the taxes.
I believe, UK Tax laws are very strict, so better be compliant than regret your actions later.

For sure you can afford to pay an accountant as you have won a massive amount.

[erep]

I don't know what the tax regulations are in your country but I'm sure we have different tax payment systems. Literally, you are just converting crypto income from gambling for withdrawals to GBP, I assume that income from gambling will go undetected unless you say so yourself. If you are worried about taxation then you can exchange GBP on P2P service, or get 20% for every withdrawal based on timeframe.

[Fivestar4everMVP]

Well, you are definitely from a country where individuals take it upon themselves to pay their tax, and this probably is because you guys can clearly see what your tax money is being used for.

In my country, individuals careless about paying tax, most especially, on moneys gotten from online generally, (it can be through crypto trading, forex trading, gambling, freelancing etc).
The only ones that take paying tax serious are registered companies, and this is because they are forced, obligated to, as not complying can lead to closure of the company.

Maybe in the future, my country can become well developed that paying tax becomes an individual responsibility, but until then, we (I personally) is enjoying this moment while it last. 

[Fortify]

Hi,

In the tax year just gone I have made around £40,000 via gambling on crypto betting websites. £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.

Two questions:

1) Do I need to pay any CGT on this (my profits from the general appreciation of crypto is minimal - less than £500)

2) If I don’t need to pay tax due it being gambling winnings rather than crypto profit, how do I prove this. A lot of my betting accounts have been closed (and therefore I cannot login to them) thus making it hard for me to prove to HMRC that my transactions have come from gambling winnings.

Thanks

While it may seem like a relatively low amount and it seems like you've done well, it'd be worth seeking independent financial advice from a regulated accountant I have no doubt that there are some sufficiently qualified people among the users of this forum, but even they might not be able to interpret the best way to complete your tax arrangements with such a limited amount of information to work on. Pay £500 and find somebody who is certified, they might even be able to save you much more money by giving you tips for the future or arranging your payments in a certain - totally legal - way. Taking advice from random strangers on a message board is a bad idea when it comes to a lot of money and potential jail for tax evasion time at the very worst case scenario.

[Odusko]

What is at stake in my country is that all income is taxed at the bankroll destination cryptocurrency may not be taxed on the exchange but then when it arrives at your bank the general income tax will be charged from the total deposits. But in the UK you may have a different method of crypto taxation but if you already have the total money deposited in your account with tax deduction I will advise you just look away from it as the income may have been untaxed.

[paxmao]

If you feel uncomfortable not paying taxes on your winning, I suggest you hire an accountant to do the job for you.

The basic rule is that, if you make a profit, you pay the taxes.
I believe, UK Tax laws are very strict, so better be compliant than regret your actions later.

For sure you can afford to pay an accountant as you have won a massive amount.

That is the general rule, now you can be Sunak's wife and pay a flat fee of 30k a year for your millionaire profits generated outside the UK because you can choose to be "domiciled" outside... but it is only for the rich enough. If that is not the case, you pay any income above allowances as per the general individual income regime and, as far as I know, there will be no exemptions for gambling gains.

[Crypto Library]

It will be difficult for us to answer your question because not everyone here is a citizen of your country, so we have no idea about the tax-rate of your country.  I think you should ask questions in uk related thread. Rather than I can say some basic things, gaming history then you can show your transactions as proof or show as source.

[Odusko]

It will be difficult for us to answer your question because not everyone here is a citizen of your country, so we have no idea about the tax-rate of your country.  I think you should ask questions in uk related thread. Rather than I can say some basic things, such gaming history then you can show your transactions as proof or show them as a source.

Exactly similar to what I said in some comments above since op is leaving in the UK and members of this forum a spread around the world it will be difficult for ops to get the right answer to his questions on UK income tax, I will rather advise op to either look away since the money is already deposited in op bank, or approach the financial institution to get the accurate information on the subject matter.

[mindrust]

It will be difficult for us to answer your question because not everyone here is a citizen of your country, so we have no idea about the tax-rate of your country.  I think you should ask questions in uk related thread. Rather than I can say some basic things, such gaming history then you can show your transactions as proof or show them as a source.

Exactly similar to what I said in some comments above since op is leaving in the UK and members of this forum a spread around the world it will be difficult for ops to get the right answer to his questions on UK income tax, I will rather advise op to either look away since the money is already deposited in op bank, or approach the financial institution to get the accurate information on the subject matter.

The basics are same everywhere though. If you have an income, you need to pay taxes. This is exactly what has been going on here. He made some money and he needs to pay his taxes. The problem is, he can't prove that he made his money from gambling. That's the tricky part. He is probably afraid of the government because they might accuse him for doing illegal activities like selling guns, cp etc.

[kamilah147]

is there a rule that says you have to pay taxes from any source of income including gambling. if so, as a good citizen you have to pay taxes to your country. but I thought, if the gambling you are playing is not supervised by the financial authorities, so you don't have to pay tax. Before you do so, you should review the rules for whether your financial resources are taxed in your country.

[og kush420]

is there a rule that says you have to pay taxes from any source of income including gambling. if so, as a good citizen you have to pay taxes to your country. but I thought, if the gambling you are playing is not supervised by the financial authorities, so you don't have to pay tax. Before you do so, you should review the rules for whether your financial resources are taxed in your country.

I am impressed to see people are so concerned about paying their taxes. In our country people try to stay away from tax payment.
This is the general public duty to the country. I wish we also become so concerned about tax returns.

[Desmong]

Hi,

In the tax year just gone I have made around £40,000 via gambling on crypto betting websites. £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.

Two questions:

1) Do I need to pay any CGT on this (my profits from the general appreciation of crypto is minimal - less than £500)

2) If I don’t need to pay tax due it being gambling winnings rather than crypto profit, how do I prove this. A lot of my betting accounts have been closed (and therefore I cannot login to them) thus making it hard for me to prove to HMRC that my transactions have come from gambling winnings.

Thanks

Normally I think the tax supposed to be paid by gambling platforms not the respect individuals. Since gambling platforms normally remove taxes when gamblers makes withdrawals, then the tax is liable to be paid by gambling platform not individual gamblers.

I don't really know the pattern of tax payment that is established by governments for gamblers but I think it is the duty of gambling platforms to collect tax from players and pay to the government directly.

[South Park]

Hi,

In the tax year just gone I have made around £40,000 via gambling on crypto betting websites. £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.

Two questions:

1) Do I need to pay any CGT on this (my profits from the general appreciation of crypto is minimal - less than £500)

2) If I don’t need to pay tax due it being gambling winnings rather than crypto profit, how do I prove this. A lot of my betting accounts have been closed (and therefore I cannot login to them) thus making it hard for me to prove to HMRC that my transactions have come from gambling winnings.

Thanks

Consulting a tax attorney seems like your best choice, after all those are questions that depend very heavily on the local regulations that you have to face, however since the amount is not out of this world and you are willing to self-report those winnings then I do not think you are going to suffer an audit that is too deep in its nature, so as long as you are open about where that money came from and you comply with the payment of your taxes I do not think you will have too much of a problem with the relevant authorities.

[Maslate]

If you feel uncomfortable not paying taxes on your winning, I suggest you hire an accountant to do the job for you.

The basic rule is that, if you make a profit, you pay the taxes.
I believe, UK Tax laws are very strict, so better be compliant than regret your actions later.

For sure you can afford to pay an accountant as you have won a massive amount.

That is the general rule, now you can be Sunak's wife and pay a flat fee of 30k a year for your millionaire profits generated outside the UK because you can choose to be "domiciled" outside... but it is only for the rich enough. If that is not the case, you pay any income above allowances as per the general individual income regime and, as far as I know, there will be no exemptions for gambling gains.

I am not sure if the article below is updated with the UK's tax laws, but it says gambling is not taxable in UK.
https://www.casino.co.uk/guides/gambling-and-taxation/

Is Gambling Taxable In The UK?
No, gambling is tax free in the UK. While players in some countries such as the USA, France, and Macau have to deal with gambling taxes between 1% and 25%, bettors in the United Kingdom have the privilege of keeping the entirety of their winnings.

If this is true, then OP does not have to worry about a tax liability as gambling winnings are non taxable anyways.

[LUCKMCFLY]

I guess it's explanatory with your 2nd statement.

You just have to explain to them well and clearly what has happened. If they insist on asking for that information, then there's nothing much that you can do.

Since you've explained everything that they need to know honestly, there's nothing that would help it and they have to look for other alternative that might be connected to your gambling/crypto profits.

It is interesting, but I have a doubt, if it is declared that way, I imagine that the institute does a pertinent investigation with the platform where such request was issued, in case the person moves a lot of money, let's say more than 0.5BTC, in the United Kingdom would they be doing a more detailed follow-up? (with the excuse of money laundering, embezzlement, illegal funds) because what I realize is that any platform can give faith and evidence of what happened because in its Blockchain-based database all records are kept, but this It would happen like the case of Binance in Colombia, which blocked citizens' funds because they were simply conducting an investigation from another country due to simple suspicions.