HMRC in UK May Reclassify Bitcoin As Private Currency
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....
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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.....
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....
HMRC has now published an official brief, outlining its position on the tax treatment of income derived from bitcoin-related activities. The UK's tax agency has reversed an earlier ruling that classified virtual currencies as gift vouchers, exempting digital currency trading from a 20% value added tax (VAT). HM Revenue and Customs (HMRC), the UK's customs and tax department, has classified virtual currencies as assets or private money, not as vouchers that required a tax on the value of the coins. Tom Robinson, co-founder of London-based digital currency storage specialist Elliptic and a....
The U. K. currently taxes gains made from Bitcoin, when Bitcoins are exchanged into fiat, as most other countries do. But 'Her Majesty's Revenue and Customs' may be changing the taxation rules regarding Bitcoin, Litecoin, and all other cryptocurrencies. Cryptocurrency is currently referred to as 'money vouchers', but the HMRC wants to change cryptocurrencies to be 'private currency', for taxation purposes. If Bitcoin remained as a 'money voucher', then a tax of 20% VAT will be charged on each and every Bitcoin transaction for U. K residents and businesses. Chaning Bitcoin to a private....
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....