Britain preparing to end plans to tax Bitcoin trading - FT

Mon Mar 3, 2014 8:52am IST

Some of Bitcoin enthusiast Mike Caldwell's coins are pictured at his office in this photo illustration in Sandy, Utah, January 31, 2014. REUTERS/Jim Urquhart REUTERS/Jim Urquhart/Files

Some of Bitcoin enthusiast Mike Caldwell's coins are pictured at his office in this photo illustration in Sandy, Utah, January 31, 2014.

Credit: Reuters/Jim Urquhart REUTERS/Jim Urquhart/Files

Related Topics

REUTERS - Britain's revenue collector is preparing to abort its plans to tax Bitcoin trading only days after the currency's leading exchange, Mt Gox, collapsed after losing almost $500 million of customer deposits to hackers, the Financial Times reported.

HM Revenue & Customs said in a meeting with UK traders that it would no longer levy 20 percent value-added tax (VAT) on bitcoin transactions and also said it would not tax margins either, according to the paper.

The British support for the currency comes days after Mt. Gox, once the world's largest bitcoin exchange, was sued by a customer in the United States seeking to recover money lost in the hacking attack.

Corporation tax and other taxes would still apply, according to the FT.

The market for bitcoins - a virtual currency created or "mined" through a process involving a network of computers that solve complex mathematical problems - is worth about $7 billion at current market rates.

The currency has been facing regulation issues worldwide, having already been banned by some countries.

"HMRC has been working closely with the bitcoin industry on the tax treatment of trading in bitcoins and commission. We will be issuing guidance shortly," the UK tax authority said.

(Reporting by Tasim Zahid in Bangalore and; William Schomberg in London; Editing by Phil Berlowitz)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Rising Star

Reuters Showcase

Cybercrime

Cybercrime

Hacker sentenced to 21 months in U.S. prison for $15 mln scheme.  Full Article 

Printed Instruments

Printed Instruments

3D printed instruments make sweet music in Sweden.  Video 

Tweet Debut

Tweet Debut

Britain's Queen Elizabeth sends her first tweet.  Full Article 

Artificial Intelligence

Artificial Intelligence

Google bolsters artificial intelligence efforts, partners with Oxford.  Full Article 

Fighting For Workers

Fighting For Workers

Ralph Nader urges Apple to reduce buybacks, improve wages - WSJ.  Full Article 

Future Uncertainty

Future Uncertainty

Ericsson flags North America slowdown.  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Looking To Sell

Looking To Sell

HP seeking buyers for corporate-networking business in China - WSJ.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage