The success comes with attention, and the taxpayer comes with a notice. Bitcoin, a crazy big jump in price until 2017, took on the most popular cryptocurrency in the world from curiosity to an overly valuable asset from governments.
Capital gains are the tool of most revenue collectors when it comes to cryptography, including the UK. What if the investment in bitcoin was really just gambling? Under British tax law, it would mean that such benefits would not have a quota. It's not as impossible as it could be read.
The tax from the British Bitcoiners is zero?
It was a pretty mild effort when statements were made. A spokeswoman for Her Majesty's Income and Customs (HMRC) commented: "Usually, we do not charge bets or gambling, because usually this is not classified as a trading income," he said. It was almost possible to hear how the dill bitcoins penetrated throughout England. "But there may be circumstances in which factors such as the degree of skill and organization are likely to be taxed as a trading income. Each case will depend on his own facts. "
Katie Morley, the editor of consumer relations, said that this statement is a "tax loophole that reduces the profit of Bitcoin investors to zero" and can be "used by people who fill their income for this tax year," which can cost millions of HMRCs.
Axisers around the whole world expect that the treasury is fattened after reaching of bitcoins in 2017, and many of the press was transferred to their ability to collect or their absence. Studies have shown how several applications in recent years have been associated with emerging technology and a lack of understanding by governments. Public comments of politicians hardly helped. But now technology is taken seriously as a digital asset, and most of them are clearly considered capital gains.
You can not deny the year of bitcoins. Thousands of percent of the increase in prices were brought by tax collectors. However, in the United Kingdom, it seems, there is a loophole, which some crypto enthusiasts may well say: gambling. If money is made from gambling, a lark, it is not taxed. At some point in 2017, the price bitcoin approached $ 20,000.
Ms. Morley cites the tax specialist as an agnostic on whether bitcoiners are necessarily qualified as players.
Perhaps investors who were engaged in relatively small quantities could claim a loophole. Otherwise, they can be taxed from 18% to 28%.
Another tax account suggests that pretending to be a player by investing in bitcoin will be a tough sell, but it would be easier to offer gambling gains with the help of altcoins, less known "bets." "It is difficult to understand how the profit from the main crypto-conversions [such as bitcoyne] can be considered as profit from gambling," he warns. "Perhaps there can be some hypothermia in which markets are random, and therefore, profits can be viewed as gambling."
In recent months, British regulators have been tweeting about how best to formulate rules for the cryptocurrency, no doubt caused by the "active year" of the asset class. The last time that this topic was formally adopted regarding the tax on the UK, as early as 2014. With its publication, it was largely recognized as a boon to the ecosystem, as the government seemed to regard bitcoin and krypton less as a mechanism to increase revenues than a new technology trying to find its place.
Bitcoin remains an asset in accordance with UK tax law, and therefore such a benefit is not taxed in the first 11,100 pounds sterling.
If the payoff is not equal to this number, bitcoiners are safe. And if this is the case, when the people who own the bitcoins increase exceed this amount, the capital gain occurs only at the time of profit, experts believe.