AAT Comment: To coin a phrase: what you should know about bitcoin and cryptocurrencies

AAT_TeamAAT_Team Administrator Posts: 519
As the most prominent cryptocurrency, bitcoin is regularly in the news.

But if you have clients investing in it, what do you need to know? What are the tax implications, and is it a bubble that’s about to burst?

Full article.


Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,449
    edited March 2018
    Interesting article - the HMRC guidance on bitcoins is from 2014 - maybe time for an update?
    reader
  • AAT_TeamAAT_Team Administrator Posts: 519
    Certainly makes sense for a refresh.

    AAT will be publishing more articles about block chain and cryptocurrencies in the coming months in the AT magazine and on AAT comment. I'll make sure to re-post as much as I can here.
    MarieNoelle
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038
    Another great article. Some of my clients are asking about this and this article definitely helps. The sentences that particularly stood out for me were:

    1) "they fall outside the Financial Services Compensation Scheme.....So....shown to be a fraud – there is no recourse, and no one will come to your rescue.”
    2) "see-sawing valuations are “reliant in part on finding the greater fool.”"
    3)“is it’s really easy to prove ownership and history of sale – it’s a public ledger and anyone can see that"
    4) “If you trade in them, they are liable to income tax or corporation tax. But if it’s an asset, it’s subject to CGT when you dispose of them.”
    MarieNoelle
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