Bitcoins

blizeH

... and it's just hit $1k!

Does anyone know about the capital gains tax implications of bitcoin please? ie does it go by the units you sell/buy or just overall profits take away purchases?

Not that I'm even close to these figures, but hypothetically if you:

Bought 500 Bitcoins for £50k
Sold 250 Bitcoins for £50k

Would they they just cancel each other out? Or would you need to go more in depth and allow for the bitcoins you sold being sold for a much higher price than the ones you thought, ie you have 250 bitcoin left over, so have technically made a profit, and need to pay CGT?

[Deleted User]

blizeH wrote: »

Does anyone know about the capital gains tax implications of bitcoin please? ie does it go by the units you sell/buy or just overall profits take away purchases?

HMRC classes bitcoins as "taxable vouchers" and on that basis I believe it's per unit.

If you buy 100 BTC for £10 a coin and then sell 50 coins for £1000 each you would be able to deduct the initial cost of the 50 BTC (£500) and your taxable amount would be £49,500. HMRC doesn't necessarily need to know what you bought, just the cost of it: so 100 BTC at £10 each means per £1000 sold you spent £10, if that makes sense.

Cotta

Are there any decent online tutorials that can give me a good introduction to bitcoins?

[Deleted User]

Cotta wrote: »

Are there any decent online tutorials that can give me a good introduction to bitcoins?

Which aspect?

You can read the original paper that covers the fundamentals: http://bitcoin.org/bitcoin.pdf

You can read a consumer friendly introducing to BTC: https://www.weusecoins.com/en/

You can read all about the specifics on the Bitcoin wiki: https://en.bitcoin.it/wiki/Main_Page

If you have any specific questions feel free to ask here, if you just want a general overview then weusecoins is a good place to start

Cotta

citricsquid wrote: »

Which aspect?

You can read the original paper that covers the fundamentals: http://bitcoin.org/bitcoin.pdf

You can read a consumer friendly introducing to BTC: https://www.weusecoins.com/en/

You can read all about the specifics on the Bitcoin wiki: https://en.bitcoin.it/wiki/Main_Page

If you have any specific questions feel free to ask here, if you just want a general overview then weusecoins is a good place to start

I guess I want to know what they are, how they work and should I invest?

csm888

Satoshi link to DPR (Slikroad) was wrong and has been retracted.

http://www.businessinsider.com/silk-road-satoshi-paper-retraction-2013-11

[Deleted User]

http://www.bbc.co.uk/news/technology-25120731

Bitcoin has become popular in part due to it being difficult to trace transactions.

Quality fact checking from the BBC.

blizeH

citricsquid wrote: »

HMRC classes bitcoins as "taxable vouchers" and on that basis I believe it's per unit.

If you buy 100 BTC for £10 a coin and then sell 50 coins for £1000 each you would be able to deduct the initial cost of the 50 BTC (£500) and your taxable amount would be £49,500. HMRC doesn't necessarily need to know what you bought, just the cost of it: so 100 BTC at £10 each means per £1000 sold you spent £10, if that makes sense.

I see, thank you citric, that's good to know

JohnRo

csm888 wrote: »

Satoshi link to DPR (Slikroad) was wrong and has been retracted.
http://www.businessinsider.com/silk-road-satoshi-paper-retraction-2013-11

About as bland and disingenuous an apology as you're ever likely to see.

citricsquid wrote: »

http://www.bbc.co.uk/news/technology-25120731Quality fact checking from the BBC.

The invective in that BBC article is hilarious. You can feel the anger rising off the page.

JeffEllis

Some have said that bitcoins can be coded and then tracked . So there will always be a record of where they have been spent. This is worse than fiat in terms of privacy. So keep that in mind that all your bitcoin transactions are being tracked and you may get a large cap gains tax bills.

youtube.com watch?v=dFoOvXX6hTU