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

AAT_Team
AAT_Team Administrator Posts: 599 🤖 Admin 🤖
in General accounting discussion
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

  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    edited March 2018
    Interesting article - the HMRC guidance on bitcoins is from 2014 - maybe time for an update?
    reader
  • AAT_Team
    AAT_Team Administrator Posts: 599 🤖 Admin 🤖
    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
  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    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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