HMRC Publicize Pro Bitcoin Stance.

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....

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....

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....

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....