With so much misinformation about the taxability of virtual currencies online, it is highly risky to believe everything you read, and safer to seek specialist guidance.
Cryptocurrency is becoming an increasingly popular way to transact and invest.
As a result the values of some cryptocurrencies, such as Bitcoin and Ethereum, have risen significantly over the last five years. Many people have become millionaires purely as a result of a relatively modest outlay in a cryptocurrency several years ago.
However, not many people understand these currencies and even fewer understand the tax implications. For instance, which profits and gains are taxable? Does it matter that I am mining? What happens if the blockchain forks? Can I roll my gain from one cryptocurrency into another?
If you’re a cryptocurrency user who has made large gains, you may decide to transfer the monies back into a ‘fiat currency’ at some time. At that point they will become visible to HMRC.
BKL’s tax specialists are able to advise clearly and accurately on the tax implications of buying and selling cryptocurrencies, mining cryptocurrencies, arbitraging exchanges and margin trading as well as transferring back into ‘fiat currencies’ and ensure that all disclosures are made precisely and promptly to HMRC. This will provide peace of mind and the assurance that you are complying fully with the law.
In appreciation of the role of cryptocurrency, in 2019 we became the first mid-sized accounting firm in the UK to accept fee payments in Bitcoin.
For more information or help from one of our tax specialists, please contact us using our enquiry form.