bitcoin UK

[jon172718]

Hi guys

I'm 19 atm and I have bitcoin which I would want to sell, but I'm not sure how to go about it. I know there is bank transfer but I don't know enough about tax etc and bitcoins to be honest. Is it legal to sell them in the UK? Would I be taxed? The amount would be atleast £5000 so would that cause any red flags on my account by the bank for receiving such amount of money? Would cash in hand go smoothly? I don't mind paying the tax or whatever but if somebody could explain it all to me that would be great.

Thanks!

[chronicsky]

Hi guys

I'm 19 atm and I have bitcoin which I would want to sell, but I'm not sure how to go about it. I know there is bank transfer but I don't know enough about tax etc and bitcoins to be honest. Is it legal to sell them in the UK? Would I be taxed? The amount would be atleast £5000 so would that cause any red flags on my account by the bank for receiving such amount of money? Would cash in hand go smoothly? I don't mind paying the tax or whatever but if somebody could explain it all to me that would be great.

Thanks!

I don't know about your country's law , it would be better if you discussed this from a lawyer.
Though with that amount you'll surely be taxed OR if you buy with cash ,you might avoid TAX but wouldn't recommend you to do that , pay your taxes.
Try to do a search on localbitcoins.com , you will find a lot of listing there and there will be many options you can choose from , you can even meet and do transactions(Be careful with that).
If you want i can buy some BTC , i can do transfer's from Canada which are possible or Paypal, message if interested.

[neurotypical]

This is a UK specific site:

https://bitbargain.co.uk/sell

even tho I would go the Localbitcoins route, ideally metting the person IRL getting paid in cash.

[Amph]

you could try localbitcoin, in your zone

[niktitan132]

I would suggest you to sell BTC via localbitcoins (cash in hand),that would be fastest.Find a trusted user on localbitcoins and do the trade.No problems with bitcoin exchange sites and verifications.

[MUFC]

Hi guys

I'm 19 atm and I have bitcoin which I would want to sell, but I'm not sure how to go about it. I know there is bank transfer but I don't know enough about tax etc and bitcoins to be honest. Is it legal to sell them in the UK? Would I be taxed? The amount would be atleast £5000 so would that cause any red flags on my account by the bank for receiving such amount of money? Would cash in hand go smoothly? I don't mind paying the tax or whatever but if somebody could explain it all to me that would be great.

Thanks!

It's legal to buy and sell bitcoins and selling 5k worth is far under the capital gains tax threshold, however some banks don't seem to like bitcoin sales and have been known to shut down people's bank accounts. That being said bittylicious is a uk site where you can buy and sell for bank transfers and I haven't heard any bad stories about them.

[pawel7777]

Hi guys

I'm 19 atm and I have bitcoin which I would want to sell, but I'm not sure how to go about it. I know there is bank transfer but I don't know enough about tax etc and bitcoins to be honest. Is it legal to sell them in the UK? Would I be taxed? The amount would be atleast £5000 so would that cause any red flags on my account by the bank for receiving such amount of money? Would cash in hand go smoothly? I don't mind paying the tax or whatever but if somebody could explain it all to me that would be great.

Thanks!

It's legal to buy and sell bitcoins and selling 5k worth is far under the capital gains tax threshold, however some banks don't seem to like bitcoin sales and have been known to shut down people's bank accounts. That being said bittylicious is a uk site where you can buy and sell for bank transfers and I haven't heard any bad stories about them.

Are there any confirmed bank accounts shut-downs because of bitcoins in UK? I've heard some stories of that sort from US, but don't recall anything from UK.

5k is not far less under cap gains threshold, which currently is at £6,000 (or at tax-free allowance rate, if you don't have any other income: £11,000).

https://www.gov.uk/capital-gains-tax/what-you-pay-it-on
https://www.gov.uk/capital-gains-tax/allowances

So if the OP buys 5k worth of BTC for cash (no receipt) and sells it later for 6k, he would be liable for cap gain tax (even know he only gained 1k). So it would be best to buy at legit place which provides some sort of receipts.

Don't know whether 5k is considered suspicious transaction by banks. But you can always ring them and ask, don't have to mention bitcoin, just say you want to transfer to a trading platform and will that be a problem.

[Lethn]

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

As far as I'm aware Bitcoin now no longer has any special rules regarding taxation, so basically as long as you're not above the £10,000 mark for the year you should be fine, I would double check with HMRC though because the rules might have changed again but they've been relatively open about Bitcoin taxation.

Read the brief in full so you know what's going on, but if you have any doubts it would be a good idea to ask a lawyer just in case, I'm currently poking around myself, I don't have the money yet but I want to know the rules just in case. Basically though, as long as you keep it in Bitcoin or cryptocurrencies it doesn't matter how much you have the UK government doesn't treat it as a taxable or regulated currency.

[pawel7777]

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

As far as I'm aware Bitcoin now no longer has any special rules regarding taxation, so basically as long as you're not above the £10,000 mark for the year you should be fine, I would double check with HMRC though because the rules might have changed again but they've been relatively open about Bitcoin taxation.

Read the brief in full so you know what's going on, but if you have any doubts it would be a good idea to ask a lawyer just in case, I'm currently poking around myself, I don't have the money yet but I want to know the rules just in case. Basically though, as long as you keep it in Bitcoin or cryptocurrencies it doesn't matter how much you have the UK government doesn't treat it as a taxable or regulated currency.

*IT - the profits and losses of a non-incorporated business on Bitcoin transactions must be reflected in their accounts and will be taxable on normal IT rules

*Chargeable gains: CT and CGT - if a profit or loss on a currency contract is not within trading profits or otherwise within the loan relationship rules, it would normally be taxable as a chargeable gain or allowable as a loss for CT or CGT purposes. Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for CGT if they accrue to an individual or, for CT on chargeable gains if they accrue to a company.

OK, I'm confused about the highlighted part. What are 'trading profits' in this context? I assume it means continuous (business) activity rather than one-time trade of BTC for GBP.

So if you're playing on the exchange buying low selling high regularly, then you'll fall under Income Tax. If you bought BTC once and then sell it all with profit, then it's CGT?

Anyhow, in case of doubt it's best to ring HMRC and ask, or better yet write them and get a written response (to have a proof), as I'm pretty sure a lot of their advisers may still be confused on bitcoin.

[Lethn]

Now I've looked at it more closely it isn't clear at all lol I'll have to go and pester HMRC about this, I did send them an email awhile back but they never got back to me, you're right in that it might be worth calling them up. I wouldn't bother with the lawyers now I think about it unless they have contacts within the government who could help them out with the language because I doubt anyone could really interpret this properly except of course the people who wrote it.

[cashtraderuk]

Hi guys

I'm 19 atm and I have bitcoin which I would want to sell, but I'm not sure how to go about it. I know there is bank transfer but I don't know enough about tax etc and bitcoins to be honest. Is it legal to sell them in the UK? Would I be taxed? The amount would be atleast £5000 so would that cause any red flags on my account by the bank for receiving such amount of money? Would cash in hand go smoothly? I don't mind paying the tax or whatever but if somebody could explain it all to me that would be great.

Thanks!

Your best option is localbitcoins and find a local cash offering in your area, just make sure to meet up somewhere very public with plenty of CCTV such as Starbucks in the town centre.

You will need to familiarise with how localbitcoins works before meeting up with the buyer otherwise you could end up getting ripped off, although this is very unlikely if you choose a pro trader with over 100 trades and an account at least 6 months old.

Spend some time reading the forums on localbitcoins and understanding the dangers and precautions to take to avoid being scammed.  

If you don't want all that hassle I will take the lot of your hands for spot -5% any time you want just pm me. We would do it through escrow on localbitcoins and you would get the funds sent to your UK bank via fast payment.

[michinzx]

ckeck digital currency laws in the UK, and just sell them through an exchange. maybe asking the exchange's customer support could answer some questions

[Rishblitz]

Localbitcoin or maybe a bitcoin atm if there is one in your area.

[wakka622]

Try localbitcoin, they will pay cash, bank transfer,etc.

[Yuki1988]

I think the easiest way to sell your bitcoin is to make one or a few p2p trades.
There are a lot of bitcoin buyers on localbitcoins in the UK. https://localbitcoins.com/sell-bitcoins-online/gb/united-kingdom/
You can pick one with a good price and a good feedback, and contact him.

I am not in the UK, but AFAIK, bitcoin transactions are taxable. You should record everything down and seek advice from lawyer and the authorities on the matter.

[anonimus]

Yes localbitcoins is best, you can take bank transfer ,Moneypak

[SirChiko]

LocalBitcoins.com is the best way but i'd rather go for online deals than face to face ones.

[crazyearner]

id use localbitcoins and to be honest I wouldn't even think about selling them now to be honest. Selling at a low is kinda stupid to sell would rather sell much higher and wait for it to recover and then sell and come back down at current price to re buy.

[jaberwock]

Yes localbitcoins is best, you can take bank transfer ,Moneypak

he said he is afraid from bank transfers. If to use localbitcoins you need bank transfer, then there is no advantage

[SirChiko]

Yes localbitcoins is best, you can take bank transfer ,Moneypak

he said he is afraid from bank transfers. If to use localbitcoins you need bank transfer, then there is no advantage

He also mentioned moneypak..