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Assume Swedish Bitcoin Tracker Gains Liable to CGT

Amateur Investor Makes £50,000 Investing In XBT Provider AB Bitcoin Tracker Euro (A Swedish Company)

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New client (aging pub musician) has made around £50,000 capital gains over 9 months on 16 separate sales of units in the above Swedish company.

The company is a Swedish-domiciled issuer of Bitcoin Trackers. The trackers are designed to mirror the return of the underlying asset, bitcoin.

I assume that these gains are liable to CGT in the normal way, and that there is no CGT exemption. I assume that the CGT exemption for foreign currency bank accounts could not possibly apply.

Does anyone know if my understanding is correct?

 

 

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08th Nov 2018 16:37

As usual accountants do no address this important subject which is the future.
My opinion is that the gain would be fully taxable and they would not be any exemption available.
The revenue are being incredibly slow to address crypto currencies and I cannot imagine any exemption being available. Sorry I cannot be definite!

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to Chris Gladwell
09th Nov 2018 00:49

Thanks for that input. At the moment I am treating this similar to an overseas unit trust and therefore liable to CGT in the normal way.
However, if it were a foreign currency bank account (which it is not) then it would be CGT exempt would it not.
I guess I am clutching at straws in an attempt to find CGT exemption, which probably does not apply to this type of investment.

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