Tax implication for selling bitcoins in UK

[zolace]

Do we have any tax implications selling bitcoins in the UK?

[Motorsports]

 None if sold for cash. Otherwise tax on capital gains.

[npi]

http://www.hmrc.gov.uk/briefs/vat/brief0914.htm

[sana8410]

Bitcoin is classed as a currency so it the same as forex. My view is that tax would only be due if it was being actively traded for profit. If it was being exchanged for actual use as a currency then tax would not be due.

[Lethn]

I actually bothered to email HMRC rather than believe the silly conclusions by news articles and you apparently pay capital gains tax on them, there are no other rules regarding Bitcoin in that area so you can easily trade over the internet with Bitcoin if you want to. So if I bought a new computer from Bitcoinstore for example with just Bitcoins the UK and German government as well wouldn't give a crap about that, but if I sold them past the £9,000 or so tax threshold I'd have to pay tax on it.

The only difficult thing is checking out how much you need to pay for that year based on what you earn when you sell.

[noviapriani]

When Bitcoin is exchanged for Sterling or for foreign currencies, such as Euros or Dollars, no VAT will be due on the value of the Bitcoins themselves. However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for Bitcoin or other similar cryptocurrency

[RyanMilligan1]

Taxes on profits.


You buy £5000 worth of bitcoin in a year and sell for £20'000 in total - £15'000 is taxable.


Minus the (£9000? roughly anyway) that is an untaxable income allowance, you now have £6000 that is taxable by the HMRC I believe that is 15% tax?

[RyanMilligan1]

I actually bothered to email HMRC rather than believe the silly conclusions by news articles and you apparently pay capital gains tax on them, there are no other rules regarding Bitcoin in that area so you can easily trade over the internet with Bitcoin if you want to. So if I bought a new computer from Bitcoinstore for example with just Bitcoins the UK and German government as well wouldn't give a crap about that, but if I sold them past the £9,000 or so tax threshold I'd have to pay tax on it.

The only difficult thing is checking out how much you need to pay for that year based on what you earn when you sell.

Places like localbitcoins will now give you a log of transactions, that will help you with tax massively. If you are a trader anyway. Shows what you bought for, then sold for. Of course if you buy other ways, like meet strangers and buy in cash they cant prove anything and have to take your word but tax evasion is a serious crime.

[ENEWIT]

Should I have to pay tax if I use Bitcoin as an investment and not for profit e.g.?