Discussion
Too Late said:
jurbie said:
HMRC has a fairly clear position on Bitcoin and it seems they are actively chasing people who disregard their responsibilities so I don't see the UK government doing anything anytime soon when you consider that lots of people who have never had to consider CGT before are suddenly being swept up in it. In the short term there could be a nice gain for the government.
The only time they'll need to do something is if the thing does collapse and the media fills up with people demanding to know why the government let them spend their own money in such a reckless way because obviously that will be entirely the governments fault. It will be too late by then but certainly could hamper any recovery.
I am interested in hosw the HMRC can chase people. The only time they'll need to do something is if the thing does collapse and the media fills up with people demanding to know why the government let them spend their own money in such a reckless way because obviously that will be entirely the governments fault. It will be too late by then but certainly could hamper any recovery.
Im not too worried with my 0.2 bitcoin in my wallet but interested in how they can trace the untraceable....
How are people going to declare their capital gains? How many are even realising these gains?
Too Late said:
I am interested in hosw the HMRC can chase people.
Im not too worried with my 0.2 bitcoin in my wallet but interested in how they can trace the untraceable....
They trace it when you exit into the real world, it’s actually pretty easy when you are looking for a transaction that relates to something real. Unless you can get someone to pay you in real cash for bitcoins, then the transaction that turned your bitcoins into GBP is there for everyone to see, and the exchange or whatever that processed it will have details of your bank accounts they paid the money to. HMRC then ask the bank who the beneficiary is and send you bill.Im not too worried with my 0.2 bitcoin in my wallet but interested in how they can trace the untraceable....
rxe said:
Too Late said:
I am interested in hosw the HMRC can chase people.
Im not too worried with my 0.2 bitcoin in my wallet but interested in how they can trace the untraceable....
They trace it when you exit into the real world, it’s actually pretty easy when you are looking for a transaction that relates to something real. Unless you can get someone to pay you in real cash for bitcoins, then the transaction that turned your bitcoins into GBP is there for everyone to see, and the exchange or whatever that processed it will have details of your bank accounts they paid the money to. HMRC then ask the bank who the beneficiary is and send you bill.Im not too worried with my 0.2 bitcoin in my wallet but interested in how they can trace the untraceable....
But...and not relevent to many these days;
What if you mined them? Basically got given some computer files worth nothing (for doing a bit of calcuation work) which ended up as worth something? Does that still count? There would be no 'purchase' record that way. Does 'mining' count as 'work' so would come under income tax somehow? Income tax should be paid in the year the work was done but if the 'reward' for the work was worth zero back then? Would be interested if anyone knew.
I bet HMRC arent that up to speed with cryptocurrencies yet.
p1stonhead said:
I bet HMRC arent that up to speed with cryptocurrencies yet.
2014 policy paper https://www.gov.uk/government/publications/revenue...hyphen said:
p1stonhead said:
I bet HMRC arent that up to speed with cryptocurrencies yet.
2014 policy paper https://www.gov.uk/government/publications/revenue...It only seems to mention instances where 'if there is an exchange rate between Bitcoin and the functional currency then this analysis applies.'
p1stonhead said:
hyphen said:
p1stonhead said:
I bet HMRC arent that up to speed with cryptocurrencies yet.
2014 policy paper https://www.gov.uk/government/publications/revenue...Also with the current media attention, you would imagine it has come to there attention further.
hyphen said:
p1stonhead said:
hyphen said:
p1stonhead said:
I bet HMRC arent that up to speed with cryptocurrencies yet.
2014 policy paper https://www.gov.uk/government/publications/revenue...hyphen said:
Wouldn't it be treated like other commodities?
If you had a diamond mine and digged up a diamond for example - as the activity is essentially the same, the rules would transfer over?
I guess so yes it would be CGT on the rise from Zero to where they are now. Difference with bitcoins is that they were worth nothing when dug up. I suppose this doesnt make a difference.If you had a diamond mine and digged up a diamond for example - as the activity is essentially the same, the rules would transfer over?
hyphen said:
Wouldn't it be treated like other commodities?
If you had a diamond mine and digged up a diamond for example - as the activity is essentially the same, the rules would transfer over?
Or would it be treated more like a sole trader creating digital content (a web designer for instance)?If you had a diamond mine and digged up a diamond for example - as the activity is essentially the same, the rules would transfer over?
p1stonhead said:
fblm said:
P1stonheads... HMRC position and accountants advice on crypto is clear.
Whats the clear advice on mined coins?Atomic12C said:
Murph7355 said:
And that's where the fun starts.
How are people going to declare their capital gains? How many are even realising these gains?
Correct me if I'm wrong, but they only become gains if you 'cash in' your bitcoin ?How are people going to declare their capital gains? How many are even realising these gains?
If its treated as money then it might be different. We need a forex trader to chime in.
Ted2 said:
p1stonhead said:
fblm said:
P1stonheads... HMRC position and accountants advice on crypto is clear.
Whats the clear advice on mined coins?It was only borne out of curiosity. There are people sitting on large quantities due to mining.
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