Is Crypto the new contracting?

[yetanotherbob]

BTW are crytpt gains tax free? income and capital gains?

Sure, why not, like any other asset (gold, sack of potatoes, crypto coins). Cash value at the time you sell minus cash value you bought it at (should) become your capital gains subject to tax... ("cash" being defined as whatever denomination you are taxed in - typically the fiat currency of the jurisdiction in which you are tax resident)

[TheGreenBastard]

Of course you should. Don't know why so many are clearly trying to advocate others are evading.

Have been paying tax in this country a full quarter ahead of earnings, which is crazy.

You did continually state there was no tax on cryptos in Germany, which is false.

[psychocandy]

Who's suggesting not paying tax on it?

Of course one should pay tax on any investment gains whatever the vehicle - no?

So how do HMRC know you've bought/sold any?

[Hobosapien]

It would be funny if certain millionaire posters lost all their crypto holdings in the coming crash. Then made bankrupt by the unbudgeted tax bill.

If it's true that the tax is realised when moving between cryptocoins and not when cashing back out to £s, and HMRC have access to those movements via the exchanges, then that would be a big worry for those holding cryptocoins over many trades.

I suppose firstly HMRC won't have access to the information from exchanges outside the UK/EU, and secondly HMRC will be slow to react meaning the jurisdiction period for potentially being caught up with in future needs to be considered. Then how do you accurately predict the possible tax bill unless every single trade was recorded so the profit could be determined.

Hopefully calculating the CGT on the £s profit at the end of it all would be enough for HMRC unless they had reason to think you were hiding something worth investigating further.

[BlasterBates]

If it's true that the tax is realised when moving between cryptocoins and not when cashing back out to £s, and HMRC have access to those movements via the exchanges, then that would be a big worry for those holding cryptocoins over many trades.

I suppose firstly HMRC won't have access to the information from exchanges outside the UK/EU, and secondly HMRC will be slow to react meaning the jurisdiction period for potentially being caught up with in future needs to be considered. Then how do you accurately predict the possible tax bill unless every single trade was recorded so the profit could be determined.

Hopefully calculating the CGT on the £s profit at the end of it all would be enough for HMRC unless they had reason to think you were hiding something worth investigating further.

A crypto currency is like any other currency. The rule for moving from one foreign currency to another is given here:

https://www.gov.uk/government/public...actice-10-1984

So purchasing one currency for another is treated as a disposal and an acquisition.

[b0redom]

Presumably you can offset losses against gains though? Otherwise if an when it does all collapse people are going to be hit with a massive double-whammy of a huge loss in 'equity' and a massive tax bill....

[b0redom]

So how do HMRC know you've bought/sold any?

I hope you're not advocating tax evasion? Whatever next? Claiming JSA when you're out of contract?

[scooterscot]

You did continually state there was no tax on cryptos in Germany, which is false.

"Germany

Bitcoin has been considered a type of private money since 2013. Although Bitcoin is subject to capital gains tax of 25% in Germany, such a tax is levied only if the profits on Bitcoin are acquired within one year after the receipt of Bitcoin. Thus, taxpayers who hold Bitcoin for longer than one year will not be subject to capital gains tax and their transaction will fall within the scope of a non-taxable “private sale”. The treatment of Bitcoin in Germany is similar to the treatment of other investment instruments, such as stocks or shares."


Bitcoin taxation in the developed countries - No More Tax

[Jog On]

So how do HMRC know you've bought/sold any?

I'm assuming it's a self assessment - although the ID hoops I've jumped through on Exchanges should aid them if they decide to investigate.

If it's true that the tax is realised when moving between cryptocoins and not when cashing back out to £s, and HMRC have access to those movements via the exchanges, then that would be a big worry for those holding cryptocoins over many trades.

I suppose firstly HMRC won't have access to the information from exchanges outside the UK/EU, and secondly HMRC will be slow to react meaning the jurisdiction period for potentially being caught up with in future needs to be considered. Then how do you accurately predict the possible tax bill unless every single trade was recorded so the profit could be determined.

Hopefully calculating the CGT on the £s profit at the end of it all would be enough for HMRC unless they had reason to think you were hiding something worth investigating further.

I don't think HMRC want (at this stage) to try and tax every individual trade. The IRS on the other hand do so I've seen posts on Reddit from yanks saying that they intend to forward trade logs to the IRS and make them do the work of calculating the gain/loss at the time etc.

Presumably you can offset losses against gains though? Otherwise if an when it does all collapse people are going to be hit with a massive double-whammy of a huge loss in 'equity' and a massive tax bill....

That will be very interesting to see - especially for those that have taken out mortgages to buy bitcoin. I had to fill out a form recently for my spread betting broker (something to do with MIFID) with a quiz to show how much I know about trading. Without passing it my account would be locked for trading. This hasn't reached the crypto space yet - it probably should ASAP... But I don't think the US based crypto exchanges have to comply with MIFID.

I'm sure when John/Jane Doe lose their house because they remortgaged to go all in on BTC it won't be their fault and they will be victims. Who will compensate them though?

[BR14]

You wont go to heaven if you invest in it though

Egypt's Grand Mufti endorses Bitcoin trading ban - BBC News