Finally The Silence Is Broken, Choose Your Crypto.
Regardless of whether you believe in the power of blockchain technology or see it as the next “Dutch tulip bubble”, there is no doubt that Bitcoin and other Cryptothermics (CC) have an impact on the world. According to Santander’s forecast, blockchain technology can reduce the cost of infrastructure for banks to 20 billion dollars by 2022, and Santander is not the only global bank that takes this technology seriously.
Research predicts that in 2018, one-third of millennial in the UK are going to invest in CC, and The Telegraph recently proposed that the ten largest organizations around the world are “Bitcoin Billionaires, potentially including FBI” – it’s easy to see where the advertisements are coming from.
Since most governments and professional bodies have not yet provided specific guidance, individuals must accept what they consider to be a suitable accounting policy and calculate the tax regime for transactions and holdings. Here is the tax effects of Cryptocurrencies for individuals:
2017 may be for many people “the year when I again laid my house and invested in Bitcoin because of the conversation I heard from someone in the pub.” For many people, the tax year before April 5, 2018 will be even more difficult when it comes to self-esteem. HMRC says that “it will be reviewed on an individual basis, taking into account specific facts. Each case will be examined on the basis of its own individual facts and circumstances. ” – an opinion that many do not consider the most useful advice ever given …
Then HMRC further states in the same article that if the transaction is highly speculative, it is not taxed, as in the case of gambling; they can regret this assessment in their article of March 2014 (before the Bitcoin boom). For most individuals CC, as speculative investments, will be taxed on Capital Gains Tax (CGT), along with shares, second properties and valuable works of art.
It is important to note that CGT occurs only when the asset is deleted. If you acquire CC and do not dispose of it before April 5, in this tax year, there will be no chargeable income. For those who have ordered their CC or been transferred to another CC, remember that you have a CGT tax free allowance of £ 11,300 (17/18), which means that you only pay CGT for any benefits from it. CGT is paid at a rate of 10% or 20% depending on whether you are a payer with a higher rate or not. It should be noted that the removal includes payments for goods or services using CC, converting from one CC to another, or selling for a “fiat currency” (the fiat currency is defined as a legal tender that is supported by the government who issue it).