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 £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.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
Normally I think the tax supposed to be paid by gambling platforms not the respect individuals. Since gambling platforms normally remove taxes when gamblers makes withdrawals, then the tax is liable to be paid by gambling platform not individual gamblers.
I don't really know the pattern of tax payment that is established by governments for gamblers but I think it is the duty of gambling platforms to collect tax from players and pay to the government directly.