Bitcoin

Bitcoin tax implications uk

Bitcoin and other cryptocurrencies – GOV. HM Revenue and Customs tax treatment of income received from Bitcoin and other cryptocurrencies. HM Revenue and Customs tax treatment of income received from Bitcoin and bitcoin tax implications uk cryptocurrencies.

Revenue and Customs Brief is a bulletin giving information on developments and changes of interest. They are used to announce changes in policy or to set out the legal background to an issue and have a 6 month life span. Don’t include personal or financial information like your National Insurance number or credit card details. This publication is licensed under the terms of the Open Government Licence v3. 0 except where otherwise stated. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

The advent of cryptocurrencies such as Bitcoin is a new and evolving area and determining their legal and regulatory status is ongoing. Cryptocurrencies have a unique identity and cannot therefore be directly compared to any other form of investment activity or payment mechanism. Bitcoin operates via a peer to peer network, independent of any central authority or bank. All functions such as issue, transaction processing and verification are managed collectively by this network. New Bitcoin is produced when a new block is attached to the chain. A new block can only be added to the chain when the answer to a complex cryptographic algorithm is solved. As well as mining, activities include the buying and selling of Bitcoin and providing exchange facilities for parties to trade Bitcoin with recognised currencies.

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