What do I have to consider when buying bitcoin in the UK?
There are a lot of factors to consider when buying bitcoin. Firstly, you should always compare current prices and fees to avoid overpaying. Secondly, terms and conditions on the use of different payment methods vary between different bitcoin exchanges. Thirdly, you want to make sure that your bitcoin exchange has a good security track record. Last but not least, you want to make sure that the identity verification process of the bitcoin exchange is smooth.
Do I have to pay tax on bitcoin in the UK?
Bitcoin purchases within the EU are exempt from VAT according to the European Court of Justice (vgl. ECJ 22.10.2015, Rs C-264/14, Hedqvist; UStR 2000 Rz 759). Investments in cryptocurrencies are generally subject to capital gains tax or income tax if you are a full-time trader.
How high are the taxes on bitcoin in the UK?
Selling bitcoin is a taxable event in the UK and subject to capital gains tax. All capital gains above the tax-free allowance of £12,300 are subject of 10% (taxable income less than £50,000) or 20% tax.