UK Accountant wanted preferably ACCA or ICAEW.
An understanding of crypto-currencies and tax implications of selling Bitcoins is essential.
In May and June 2011 I purchased £11,000 worth of Bitcoins. I bought some Bitcoins on an exchange which subsequently went bust and I lost all my Bitcoins, I also bought Bitcoins on another exchange which also went bust but I got 95% of my Bitcoins out of this exchange before it went bust. By the end of 2011 my £11,000 purchase of Bitcoins was worth £900. The Bitcoins I still own are currently worth over £1m.
On the 3rd of March 2014 the government published a policy paper: Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies. It basically said that most £GBP gains from holding Bitcoin should be treated as capital gains but it also said the following: "Whether any profit or gain is chargeable or any loss is allowable will be looked at on a case-by-case basis taking into account the specific facts. Each case will be considered on the basis of its own individual facts and circumstances. The relevant legislation and case law will be applied to determine the correct tax treatment. Therefore, depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable.. For example gambling or betting wins are not taxable and gambling losses cannot be offset against other taxable profits."
Had I cashed out in 2011 with a loss of over £10,000 I am pretty certain that the government would not have given me tax relief. At this time Bitcoin was known by very few people, it was full of scammers and hackers and it was difficult not to loose your Bitcoins. The 70 Bitcoins I purchased for £3.60 each on the first exchange would be worth £250,000 now, if the exchange owner had not stolen my stored Bitcoins and put them in a ponzi scheme. By the time I had got money to Japan to purchase Bitcoins on a different exchange the price was 400%+ higher.
I am planning to sell half of my Bitcoins this tax year (this has already started) to purchase a home for my family.
Extra details... I am currently renovating a house as a self employed sole trader; I am 2 years into this house and still haven't finished, this should also sell this tax year for a profit of £50-90,000, I think this may be a very tax inefficient. I have no other income. My wife is on maternity leave and we have 2 children under 3.
Ideally I would love to find an accountant who is going to advise me that my Bitcoin investment was so speculative that no tax is payable.
1. Do I have a case for paying 0% tax?
2. If so, how would I go about not paying tax? Is there a simple way to arrange this with HMRC beforehand? or do I need to find an accountant who has indemnity insurance to file my tax, who I then sue if HMRC chase for extra payments?
3. If so please can you point me to an accountant who would happily file my accounts for me at a reasonable price?
This is a simple advice question. To get paid I need a yes to question 1, and a step by step solution to not paying tax, if this involves question 3 I also need a Yes and a contact who is happy to file my accounts in question 3.