Bitcoins for Tax Treatment

How to treat Bitcoins from tax point of view.

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The company's main activity is buying and selling Bitcoins. I presure it won't affect Turnover at all so no VAT registration required.

What about Income Tax or Capital Gain Tax? Would  I treat the difference as Currency Exchage difference and pay Income Tax on Profit? Alternativelly would I treat it as buying and selling stock and pay Capital Gain Tax on Profit?

Are any other complications involved?

Many Thanks

Replies (6)

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By stratty
14th Feb 2017 13:38

I highly recommend google and a quick search. Took me 10 seconds to find articles at HMRC considering the position of bitcoin.

Thanks (1)
By mrme89
14th Feb 2017 13:39

You say company, but then mention income tax and CGT. I'm confused.

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Replying to mrme89:
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By acctaw
14th Feb 2017 14:36

Sorry for confusing you. I'm not familiar with this type of business. I'm asking about Capital Gains Tax as a self-employed sole trader. How would I treat it from accounts point of view?
Thank you for your help in advance.

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By ireallyshouldknowthisbut
14th Feb 2017 13:41

Seriously?

Either (a) you had 6 pints for lunchtime

or (b) this is a wind up

Edited to add: typing too slow!

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Replying to ireallyshouldknowthisbut:
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By acctaw
14th Feb 2017 14:42

Sorry, English is my third language.

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By ireallyshouldknowthisbut
14th Feb 2017 16:08

My comments where not directed at your English its about comprehension of how tax works in the UK.

This is a site for tax professionals, if you are not even at a basic level of understanding of what the taxes are even called, then quite frankly what are you doing preparing accounts and tax returns?

Thanks (3)