Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: cryptorakibul on January 20, 2018, 02:53:18 PM
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I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You don't have to pay tax when you trade one cryptocurrency for another
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
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actually Bitcoin is not taxable because of its anonymity and only on the Blockchain path.
but if Bitcoin is exchanged on the Exchange and you have FIAT then the FIAT fee is taxable.
Britain is indeed open to cryptocurrency and I have also heard that the mosque also accepts Bitcoin for Zakat.
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I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You don't have to pay tax when you trade one cryptocurrency for another
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
If you give twenty thousand dollars cash to a dealer for a car, he will declare it, you'll pay tax on the car, and you can have the car. The government will check that your over ten thousand dollar purchase fits within your overall finances, that that money is legit. So if you give bitcoin to the dealer, he will probably send it through a bitcoin payment processor, and get 20 000 dollars for it immedietly, and declare the large purchase, so government would somehow check if that amount fits into your finaces?
If your car dealer winks at you when you say you want to pay with cash, or bitcoin, it's probably all good though, but you might still have to find a way to explain the car on the records. I think it's very important that the tax is paid for the product, and here it has to be in local currency, so the dealer has to sell at least some to pay the tax.
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The existence of the Cryptocurrency tax system in the UK is positive and negative. If we look at the Positive side, we can be protected by English law about crypto digital money, because from there the government legalized crypto money as a means of transaction of its citizens. While the negative impact of this tax system is our reduced income because it must be tax deductible. That's all I can explain about this.
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actually Bitcoin is not taxable because of its anonymity and only on the Blockchain path.
but if Bitcoin is exchanged on the Exchange and you have FIAT then the FIAT fee is taxable.
Britain is indeed open to cryptocurrency and I have also heard that the mosque also accepts Bitcoin for Zakat.
Yes I agree , I think bitcoin is nit taxable. But, If the government want to take tax, They must legalize bitcoin.