- trading profits which will be subject to income tax, or;
- highly speculative transactions which are treated as gambling and therefore not subject to income tax; or
- capital gains which will be subject to capital gains tax.
HMRC Want a 'Bit' of Your Bitcoin
Tuesday 6 February 2018
![HMRC Want a 'Bit' of Your Bitcoin](/assets/images/title-news.png)
It could be that in recent weeks and months you’ve been like me, and seemingly a very large part of the world’s adult and probably teenage population, and you’ve been tempted or at least thought about “investing” in Bitcoin or one of the other cryptocurrencies. Equally, it could be that, also like me, you’re steered clear of it as you’re old enough to remember the Tulip mania bubble. (OK I admit that’s probably a slight exaggeration as that was in around 1637!) Either way I suspect that thinking about how the gains you would hope to make would be taxed might not be terribly far towards the top of your agenda. Fortunately, our friends at HMRC have been way ahead of us all and issued guidance on this as long ago as 2014 in the form Revenue & Customs Brief 9/2014. HMRC’s guidance says that there are three possible treatments for gains/profits which are made on Bitcoin or other cryptocurrencies – they could be:
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