I am in the UK and have not yet cashed out any coin.
However when I do, I understand from a phone call to the HMRC and a cross check of their website, that I will be needing to pay capital gains tax over a certain tax free threshold, reset annually.
So although there is no 'Bitcoin Tax' the act of changing Bitcoin in to Fiat creates a Capital Gain.
So I just have to make sure that I stick within the £10k or so annual threshold and I don't pay a penny.
However, if I do happen to need to or want to exceed that threshold, will I pay the tax? Of course I fucking will, I don't need or want the hassle of a fine or jail time. Anyone who says otherwise is, in my opinion, a total imbecile.
However when I do, I understand from a phone call to the HMRC and a cross check of their website, that I will be needing to pay capital gains tax over a certain tax free threshold, reset annually.
So although there is no 'Bitcoin Tax' the act of changing Bitcoin in to Fiat creates a Capital Gain.
So I just have to make sure that I stick within the £10k or so annual threshold and I don't pay a penny.
However, if I do happen to need to or want to exceed that threshold, will I pay the tax? Of course I fucking will, I don't need or want the hassle of a fine or jail time. Anyone who says otherwise is, in my opinion, a total imbecile.
What he said
Until HMRC recognizes btc as a currency and creates a btc wallet to receive taxes, there's nothing we can do even if we wanted to (unless ofc we change all our btc to fiat (assuming its over the threshold) declare that fiat, pay the taxes, then change all the fiat back into btc), which is bloody stupid in anyones book.. And ye, as the person above says, if you're going to cash out xxx amount over the threshold, then ye.. it's bloody daft NOT to declare it (if you have to for any purposes).