BITCOIN will be taxed following a dizzying year of price rises and falls, industry experts have warned as the volatile cryptocurrency continues moving towards the mainstream.
With bitcoin’s price rising 1100 per cent over 2017 the HMRC has decided against creating new legislation to ensure the investment gains are taxed appropriately.
But experts have warned the cryptocurrency will not remain exempt from tax.
Benjamin Dives, CEO of London Block Exchange told Express.co.uk:
“In this world, nothing can be said to be certain, except death and taxes. Cryptocurrency may be new and unique, but it is not exempt from tax liability.”
Mr Dives says individuals who profit from their Bitcoin investments will be required to pay capital gains tax – just like those who profit from the disposal of their stocks, shares and other investment instruments – through their annual self-assessment.
Profits from bitcoin price rises are subject to 20 per cent Capital Gains Tax – or 19 per cent Corporation Tax if it’s a company doing the trading. Everyone has a Capital Gains Tax free allowance of £11,300 per annum – any gains up to this amount are tax free.
Read more: Express