Hi,
In the tax year just gone I have made around £40,000 via gambling on crypto betting websites. £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.
Two questions:
1) Do I need to pay any CGT on this (my profits from the general appreciation of crypto is minimal - less than £500)
2) If I don’t need to pay tax due it being gambling winnings rather than crypto profit, how do I prove this. A lot of my betting accounts have been closed (and therefore I cannot login to them) thus making it hard for me to prove to HMRC that my transactions have come from gambling winnings.
Thanks
From your statement, you have already withdrawn 99% of wins or profits. It is only 1% that is left. You should thank God that the bank even allowed you to withdraw to that amount because must bank would not allow you to withdraw that percentage without collecting their share. Though I can't make any reasonable contribution because I not your Country, and I don't know your Country's tax rate in a specific amount of money from withdrawing. But that not withstanding, for your first question, I will say yes. Because I believe your Country operates capitalism system, in which the bank is own by an individual, which the management would used the tax you paid to pay workers, maintenance and others expenses. As for the second question. In anything you do in life, there are terms and conditions. Probably you violated the terms and conditions in the sites that is why your account has been blocked. I believe your transactions are still in your phone or email. Both the ones transfer from your gambling accounts to your local accounts. Those are good proves.