Bitcoin investors who made huge gains when the cryptocurrency’s value rocketed last year have been warned that they could unknowingly owe tax to HM Revenue and Customs (HMRC).
![Bitcoin Electronic Money (Image: MaxPixel)](https://i2.wp.com/bitcoin-investors.co.uk/wp-content/uploads/2018/01/495995_Currency-Electronic-Money_Bitcoin_MaxPixel.jpg?resize=474%2C356&ssl=1)
However, there is some confusion around the issue, as Ed Molyneux, the boss and co-founder of cloud accounting software provider FreeAgent, explains:
“HMRC sees bitcoin profits being subject to capital gains tax, but there does not appear to be a definitive answer on the issue yet, which could cause confusion among investors.”
It comes down to whether bitcoin is classified as an investment or a currency. Currencies are exempt from capital gains tax, but investments and commodities are not.
Read More: CityAM