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 £30,000 of this I have converted into GBP and withdrawn from my crypto wallet to my bank account.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
Consulting a tax attorney seems like your best choice, after all those are questions that depend very heavily on the local regulations that you have to face, however since the amount is not out of this world and you are willing to self-report those winnings then I do not think you are going to suffer an audit that is too deep in its nature, so as long as you are open about where that money came from and you comply with the payment of your taxes I do not think you will have too much of a problem with the relevant authorities.