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 £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.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
While it may seem like a relatively low amount and it seems like you've done well, it'd be worth seeking independent financial advice from a regulated accountant I have no doubt that there are some sufficiently qualified people among the users of this forum, but even they might not be able to interpret the best way to complete your tax arrangements with such a limited amount of information to work on. Pay £500 and find somebody who is certified, they might even be able to save you much more money by giving you tips for the future or arranging your payments in a certain - totally legal - way. Taking advice from random strangers on a message board is a bad idea when it comes to a lot of money and potential jail for tax evasion time at the very worst case scenario.