Under current uk rules the general tax position on cryptocurrency is that it is the nature of the activities rather than the underlying asset that determines the liability to uk taxation whether that liability is to capital gains tax income tax or corporation tax or whether any exemptions may apply. Do you have to pay capital gains tax on bitcoin or other cryptocurrencies. Bitcoin hobby or trade activities which generate speculative gain are not taxable in uk e g gambling or betting wins which are not taxable and gambling losses which are not available for offset against other taxable profits.
Capital gains and income tax might be due everyone has an. You don t have to pay tax when you buy bitcoin or other cryptocurrencies in the uk but you might have to pay tax when you come to sell it. Information about the location of exchange tokens and how it affects tax liability has been added to cryptoassets.
Capital gains tax comes into affect after gains pass the 11 300 threshold therefore this situation would leave 4 200 to be taxed at 10 or 20. As the current price of a bitcoin is approximately 8 000 you would make a capital gain of roughly 15 500. This means a person who holds exchanges tokens is liable to pay uk tax if they are a uk resident and carry out a transaction with their tokens which is subject to uk tax.
