17 Jan 2014 / International Business Times – HMRC is set to change its stance on the classification and taxation of bitcoin and other virtual currencies in the UK as soon as February.
Having spoken to a number of UK businesses who use bitcoin, HMRC is expected to change its classification of bitcoin from a tradable voucher to a private currency, eliminating uncertainties over capital gains tax and producing a reduced VAT, or sales tax, liability.
Experts say the move will give Britain’s bitcoin industry “a significant competitive advantage” over that of countries like China and the US, who have a less welcoming view of the currency.
According to Richard Asquith, head of tax at investment advisers TMF Global, the reclassification of bitcoin to a private currency would mean owners would not be liable for capital gains tax, and although VAT would still apply, it would only be incurred when trading on an exchange, not when buying goods.
The move would bring Britain in line with Singapore and Germany, who both classify bitcoin as a private currency….. Read more
http://www.ibtimes.co.uk/hmrc-re-classify-bitcoin-private-money-1432718
According to Richard Asquith, head of tax at investment advisers TMF Global, the reclassification of bitcoin to a private currency would mean owners would not be liable for capital gains tax, and although VAT would still apply, it would only be incurred when trading on an exchange, not when buying goods.
The move would bring Britain in line with Singapore and Germany, who both classify bitcoin as a private currency.
