HMRC of United Kingdom Issues Tax Brief on Bitcoin
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....
Related News
Her Majesty's Revenue and Customs (HMRC) in the United Kingdom has decided to reconsider their previous stance of considering bitcoin as vouchers. Previously, the department had made the decision to classify bitcoin as vouchers, thus making VAT (value-added tax) applicable in transactions in the United Kingdom. But after a visit from prominent members of the bitcoin community (which includes an entrepreneur, CEO, and lawyer, the HMRC quite simply changed their minds after hearing what they had to say (which was generally aimed at educating HMRC on bitcoin's usage). "The general feeling I....
Her Majesty's Revenue and Custom (HMRC) is the department in the United Kingdom government that oversees the collection of taxes, similar to the Internal Revenue Service in the United States. This brief, released 3/3/14, “sets out HMRC position on the tax treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies, specifically for Value Added Tax (VAT), Corporation Tax (CT), Income Tax (IT) and Capital Gains Tax (CGT).” It is specifically targeted towards any individuals or businesses “making charges or otherwise....
Some good news is coming in the wake of the Mt. Gox hysteria this week. It is being reported that HM Revenue & Customs (HMRC) will be dumping a 20 percent VAT (value-added tax) on bitcoin trades in the United Kingdom, according to the Financial Times. The move comes amidst a slew of complaints from entrepreneurs in the country, who said the tax challenged their competitiveness in the global market. The decision reportedly came from a meeting that took place last week between the tax authority and UK-based traders. At that meeting, it was also said that HMRC would not tax margins. The....
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....