Will UK Tax Authority HMRC Reclassify Bitcoin as 'Private Currency'?
A reclassification of bitcoin by the United Kingdom's tax authority would put the nation in line with more liberal bitcoin tax rules initiated by Singapore, a professional services firm has claimed. Richard Asquith, head of tax at TMF Global, said the UK's tax authority HM Revenue and Customs (HMRC) is most likely to reclassify bitcoin as a 'private currency'. This would significantly reduce the tax liability compared to its current classification as a 'tradable voucher'. If HMRC classifies bitcoin as private money, then bitcoin holders would not be liable for capital gains tax.....
Related News
Head of tax at TMF Global, Richard Asquith, says that Her Majesty's Revenue and Customs (HMRC) is likely to reclassify bitcoin as a private currency. If true, the reclassification would effectively eliminate heavy capital gains taxes, despite still being charged a value-added tax (VAT) on fees at an exchange. As a result, this might give the United Kingdom bitcoin industry a competitive edge, according to Asquith. The move would also resemble Singapore's current stance on bitcoin. It "means that [bitcoin] would become much more like gold, which is VAT exempt. Gold is treated like money but....
Bitcoin exchanges operating in the UK do not have to register with HM Revenue & Customs (HMRC) under money laundering regulations, the government department has revealed. In a letter to Joel Dalais, director of soon-to-launch exchange FYB-UK, HMRC suggested it was keeping a close eye on bitcoin and said it may decide to change its stance in the future on how the digital currency is regulated. The letter from HMRC read as follows: "With reference to your enquiry at this time there is no requirement to register with HMRC under the Money Laundering regulations, however HMRC recognise that the....
HM Revenue and Customs (HMRC - the UK customs and tax department) has backtracked on its previous classification of bitcoin. Last month, it was revealed that HMRC had decided to classify bitcoins as vouchers, which meant that VAT would be due on sales involving the digital currency. Today, members of the UK bitcoin scene visited HMRC today to speak with the government department about cryptocurrency. Tom Robinson from BitPrice, bitcoin entrepreneur Michael Parsons, Marc Warne from Bittylicious and Eitan Jankelewitz from Sheridans law firm were present at the meeting. Robinson said: "We....
The regular drumbeat of government warnings on bitcoin continues apace. Last month, Israel, Vietnam and Cyprus joined the chorus. However, in addition to this din (not entirely unwarranted many would argue) one government body has begun to undo its earlier mistakes in the bitcoin space. The body in question is the UK's tax authority, HMRC, which this month effectively recognised bitcoin as a currency after months of lobbying by London's bitcoin community, led by members of the soon-to-launch UK Digital Currency Association. But will HMRC's decision turn the UK into a leading centre for new....
Just one day following reported that tax authorities in the United Kingdom would be dumping a tax on bitcoin trading, HMRC (Her Majesty's Revenue & Customs) has issued tax guidance on bitcoin and other cryptocurrencies. Some interesting points: HMRC will exempt bitcoin mining income because "there is an insufficient link between any services provided and any consideration received." Bitcoin exchanges for Sterling and other foreign currencies will be VAT exempt. "Charges (in whatever form) made over and above the value of the Bitcoin for arranging or carrying out any transactions in Bitcoin....