With success comes attention, and with notice comes the taxman. Bitcoin’s crazy great jump in price over 2017 has taken the world’s most popular cryptocurrency from a curiosity into a begrudgingly valued asset by governments. Capital gains is the tool of most revenue collectors when it comes to crypto, including the United Kingdom (UK). What if investing in bitcoin was really just rank gambling? According to British tax law, that would mean such gains would go untaxed. It’s not as impossible as it might first read.
Also read: Ditch University and High Transaction Fees!
UK Bitcoiners’ Tax to Zero?
It was a rather mild effort as statements go. A spokesperson from Her Majesty’s Revenue and Customs (HMRC) commented: “We don’t normally tax betting and gambling because it is usually not classed as trading income,” he said. One could almost hear bitcoiners’ ears perking up all over England. “But there may be circumstances where factors such as the degree of skill and organisation would make the activity more likely to be taxable as trading income. Each case will depend on its own facts.”
Consumer affairs editor Katie Morley reported the statement as being a “tax loophole which reduces Bitcoin investors’ gains to zero” and could be “exploited by people filling in their returns for this tax year,” which might cost HMRC millions.
Tax men around the globe are expecting coffers to fatten after 2017’s bitcoin gains, and much press has been given to their collection abilities or lack thereof. Studies have shown how few filings over recent years were due to nascent technology and lack of government minders’ understanding. Public comments by Read More Here