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 £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.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
I’m sure you have email receipt of your gambling withdrawal because casino has this feature if you have extra security setup on your Casino since you are gambling with huge money. In case you really can’t recover your gambling receipt, You are forced to make a proof of source of that funds or else you will be in trouble on audit.
Sell your crypto face to face or consult a lawyer on how you will pay the tax for yournmoney to save you from trouble.