Quote from: fattyforhire on December 16, 2017, 07:46:13 PM

Quote from: unbeaten on December 16, 2017, 07:36:22 PM

I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...

You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT

What I really want to know and can't find the answer to online is...

What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x

The answer to your question directly depends on how and where you will change your bitcoins to buy a car or something else. Now there are a large number of independent exchangers and it is always possible to negotiate a personal meeting with the seller about the method of payment. Wink

If the buyer is willing to accept bitcoins directly and you swap the Bitcoins for the car without touching GBP do you still have to pay capital gains tax?