How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 2849
Type Your UK Tax Question Here...
bigduckontax is online now
A new question is answered every 9 seconds

this short and concise

This answer was rated:

Hello, I'm Keith and happy to help you with your question.

Under the Double Taxation Agreement between the UK and the USA you are taxed in only one country, or you should be. If classed for tax in the UK any tax you pay in the States will be allowed by HMRC against UK taxes. You can't be taxed twice, in other words.

Now as regards XXXXX XXXXX general rule in the UK on currency trading is that it comes under the Capital Gains Tax (CGT) regime. CGT would not be charged in any case on the sale price, but the difference between the the original buying and ultimate selling price of the Britcons less any charges incurred. There is an allowance of GBP 11,900 in the CGT computation. Profits over this amount per year would be subject to the tax.
bigduckontax and other UK Tax Specialists are ready to help you
Now I'm confused!
Customer: replied 2 years ago.
What about the lack of documentation? I'd have to provide something correct? And as for deposit the cash in the bank -- won't they need to see documentation too? Or just the proof that taxes were paid?
HMRC would only require documentation in the unlikely event of an investigation into your tax affairs. You should, for your own convenience, record permanently in writing your transactions to support your transactions should they ever be challenged. You can do no more that that at this stage.

True, your bank might question the deposit of a large cash sum. This is to prevent money laundering. However, should it be queried, you should put yourself in a position to be able to assure that that your big pay in was the result of a Britcoin sale. Documentation, if available, would be of assistance here.
Thank you for your support.

Related UK Tax Questions