So... I've cashed out enough Bitcoin to pay off the mortgage and pay 28% capital gains tax on it. I spent £10 on Bitcoin in January 2011 when you could still buy them with Paypal.
I've outlined the situation briefly to my Mum's accountant who says it all sounds pretty straightforward. Obviously I visit exchanges and read Bitcoin news and google therefore sends me lots of adverts for accountants who specialise in dealing with Bitcoin tax issues.
Is there any point in going to one of these firms? It strikes me that I might end up paying them a lot of money for advice on a straightforward issue. I know there is a suggestion that sufficiently speculative transactions count as gambling and are therefore untaxed. However whilst it feels as if I've won the lottery, another part of me feels that it was just a particularly good investment and should have been treated as such. In which case, simple..?
UK capital gains tax is 20%, not 28% - unless you're a high earner. I assume because you're using your mum's accountant you are not a high earner.
Also, the first £11,700 earned annually via capital gains is tax free.
If your partner/mum and you invested together, then this means the capital gains tax allowance would be doubled to £23,400.
The majority of accountants dont understand crypto, but they do understand capital gains so it should be straight forward. I don't believe you need a large firm to handle it.
At the end of the day, if the figure is £50,000 - £500,000 or even £5,000,000 - the maths is straight forward for an accountant.