Selling bitcoins?

[Ulti]

Hi Hexites,

Now that bitcoins have gone up, I'm planning to let some go.

However I have two potential issues:

1) Which exchange to use - as I'm a UK resident I assume I'd want to use a UK exchange so I can withdraw proceeds directly to my bank account
2) Capital Gains Tax - I assume I need to report my income from selling bitcoins. I must admit I've never done my own taxes before as I've never been self employed so not sure how I proceed with this.

I know this isn't a finance forum but I'd be grateful with any info/experience people have had with selling bitcoins!

Thanks!

[ik9000]

Not an expert or anywhere close but IIRC CG tax only kicks in above a certain amount so it will depend how much you want to sell. Given that the tax year ends start of April (i think...?) you could stagger sales to get it to fall in two different years too. I would offer to buy some off you but at the current price I think it's out of my reach.

[peterb]

Hi Hexites,

Now that bitcoins have gone up, I'm planning to let some go.

However I have two potential issues:

1) Which exchange to use - as I'm a UK resident I assume I'd want to use a UK exchange so I can withdraw proceeds directly to my bank account
2) Capital Gains Tax - I assume I need to report my income from selling bitcoins. I must admit I've never done my own taxes before as I've never been self employed so not sure how I proceed with this.

I know this isn't a finance forum but I'd be grateful with any info/experience people have had with selling bitcoins!

Thanks!

If you do self assessment for income tax, that has a section for Captal gains. There is taper relief applied to CGT. I’d suggest you look at the HMRC website.

https://www.gov.uk/topic/personal-tax/capital-gains-tax

[b0redom]

https://www.gov.uk/government/public...yptocurrencies

If you've mined them yourself, you're liable for income tax. If you've bought and then sold them, you're liable for CGT. Looks like you're allowed £11300 of allowance before you have to start paying CGT though.

https://www.gov.uk/government/public...ree-allowances

[MLyons]

https://www.gov.uk/government/public...yptocurrencies

If you've mined them yourself, you're liable for income tax. If you've bought and then sold them, you're liable for CGT. Looks like you're allowed £11300 of allowance before you have to start paying CGT though.

https://www.gov.uk/government/public...ree-allowances

I wonder how and when they calculate the coins you have mined yourself? Is it the value when they are mined, 'value' upon sale or how much you sold them for?

[peterb]

I would think it’s how much they realise at sale - ie, cash in hand or the bank.

[ik9000]

cough, speak to an accountant and put the money in trust. cough cough

[Zak33]

I wonder how and when they calculate the coins you have mined yourself? Is it the value when they are mined, 'value' upon sale or how much you sold them for?

or how you define the cost of mining them in terms of electricity, graphics card cost etc

[Ulti]

Thanks everyone. Yikes I didn't realise if I had mined them myself they would be liable to income tax! That's going to be a lot of tax on them!

[Englander]

Time to change your status from 'poor student'?

[wazzickle]

Why on earth would you pay tax on them? Seems nutty to me, part of the point of btc is that the government can't get their grubby hands on your money.

[b0redom]

...because not paying tax is tax evasion? Just because you're not likely to get caught doesn't make something right....

[Butcher]

Why on earth would you pay tax on them? Seems nutty to me, part of the point of btc is that the government can't get their grubby hands on your money.

If you don't want to pay tax, keep them as bitcoin. You only pay tax when you convert them to pounds.

[ik9000]

If you don't want to pay tax, keep them as bitcoin. You only pay tax when you convert them to pounds.

says the person driving on tax funded roads, using tax-subsidised internet infrastructure, taught by a tax-funded education system and who has undoubtedly used the tax-funded NHS at some point in their life. That the government suck I do not debate, and no-one likes having to pay tax, but it is the right thing to do, and is necessary for a healthy and fair society IMO. The problem with the current lot is that they're trying to destroy it so they and their rich chums can play Uncle McScrooge out of ducktales and revel in their money while everyone else gets shafted.

[peterb]

Why on earth would you pay tax on them? Seems nutty to me, part of the point of btc is that the government can't get their grubby hands on your money.

...because not paying tax is tax evasion? Just because you're not likely to get caught doesn't make something right....

its actually tax evasion which is a criminal offence

[peterb]

If you don't want to pay tax, keep them as bitcoin. You only pay tax when you convert them to pounds.

Which might be tax avoidance, but the longer you hold them, the more likely they are to at least fall, if not dive-bomb.