Quote from: Crypto_Cumbrian on July 16, 2013, 08:21:26 AM

So how do miners sit in regards to Tax.

Lets say I mine 50 BTC a Month and Sell them 50 BTC for £50.00 Pounds each, total = £2500 pounds.

Do I pay Income Tax at my Current rate, PAYE + BTC's Sold or Do I pay CGT at 18%.

Mining is self employment.

You should pay income tax based on the bitcoin value at the point it was mined based on that day's exchange rate. It is then your asset.

You should then pay capital gains on the difference between that and the value you later sell it at.

Individuals have a capital gains allowance of £10,900 this financial year, so unless you are very successful or selling something else (e.g. second property) in the year you probably don't need to worry about capital gains.