How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jamie-Law Your Own Question
Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 5582
Experience:  Solicitor
96104960
Type Your Law Question Here...
Jamie-Law is online now

I imvested on crypto coins 2-3 years ago and the increased

Resolved Question:

I imvested on crypto coins 2-3 years ago and the increased their value a lot. They currently worth 100.000 pounds right now and increasing on value each month.
At beginnings i thought was free of tax like gambling but "Customs Brief 9 (2014): Bitcoin and other cryptocurrencies" mentions that might treat as capital gains.
My main concern is what documents and information the goverment will request once I transformed to pounds and tranfered to my uk bank account. Crypto market has been unestable, some exchanges were closed afte being hacked like crypsty in which i lost part of my coins. I can get the history of bitstamp and poloniex exchanges. Moreover i can get all crypto transaction i made as they are public.
So my main question is, what will goverment ask me to demonstrate that money came from crypto market?
Thanks in advance
Submitted: 6 months ago.
Category: Law
Expert:  Nicola-mod replied 6 months ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 6 months ago.
Hello,Thanks for coming back.My question is not urgent (though it is important to me) therefore I can wait for an accurate response on detail.The law related to bitcoins is "Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies" and I believe I am included on the case of "Captial Gains Tax rates and annual tax-free allowances" as I invested long term crypto marketMy question is what documentation and information they will request for that incomingI can gather the following:
- historic of the trasnsactions and trades on the exchanges
- and the transacations between addressesGovernment mentioned they treated each case individually which is confusing meI look forward to hearing from youThanks
Expert:  Nicola-mod replied 6 months ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Jamie-Law replied 6 months ago.

Hello my name is ***** ***** I will help you with this.
I assume you have evidence of the original purchase?

Customer: replied 6 months ago.
Hello Jamie,the investment:
---------------------- A transaction from my bank account to a friend in meantime i was verified on the exchanges (justcoin on my case)
- Bitcoin bought on ebay
- Transactions made from my bank account to exchanges justcoin and bitstamp
- NEM, a crypto coin which was shared by free and it has high value todayOn my first case i can demonstrate the transaction from my bank account to my friend and the transaction from their coin address to mine (to check on gatehub)
Second case i have the invoice for that
The third case:1- I can demonstrate the transaction from my bank account to Justcoin account, however justcoin change the owner and changed the name so I have the historic of the coins transaction but i cannot get the historic of the deposit from my bank account as the old bank account changed with the new owner
2- From my bank account to bitstamp i have both transactions proofs, from my bank and from bitstamp exchangeThe losses
-------------------
At beginning this was too risky and i lost part of my coins when FBI closed Crypsty due to this had been hacked and was on bankrupt. I have lost the history of transaction and part of my coins there.Therefore,
what information and documents government is asking on this cases?
will they need the complete history of coin transactions which is really huge and impossible to have 1005 complete?
Will they trace all moves from coin addresses or that is out of their scope?
what would you recommend on my case?Thanks in advance
Customer: replied 6 months ago.
Hello,I would like to add that the most of my profits became when I used part of the XEM (NEM coin delivered by free) on Ethereum ICO (crowdfunding). I can demonstrate all the process of NEM coin from beginning through the emails and the coin transaction from there to Ethereum ICO.The key here is if the government is contracting third party to analysis those coin transactions or, they do not know how to check that and/or do not itThanks
Expert:  Jamie-Law replied 6 months ago.

I understand. If you can show a trail of the money from investment to cashing out then this is ok.

For example if you forex trade this is classed as a bet and not subject to tax unless it's your primary source of income.

If you have evidence of the Transactions and trades then that should be enough.

You just need to show it was you and / or the source of the funds.

Can I clairfy anything for you about this today please?

Customer: replied 6 months ago.
Hello,First quesion is, even though it might free if tax, it is mandatory to advise goverment, is not it? When do i need to o firm them? At the end of the fiscal year(March 2018)?Thanks
Customer: replied 6 months ago.
Need to inform.. i meant
Expert:  Jamie-Law replied 6 months ago.

You would need to complete a self assessment return.

You would do this for this current tax year ending April 2018

Does that clairfy?

Customer: replied 6 months ago.
thank youMy only concern now is what gov can consider a valid proof as the exchanges on crypto coin are overloaded and their support do not normally response to the ticket so i cannot count with their support but I have the history if trade with history of transactions and can get screenshots. I will have to investigate this furtherThanks
Expert:  Jamie-Law replied 6 months ago.

Indeed. All the best. If I could ask you to rate my answer before you go today, by clicking on the 5 stars or happy face, otherwise the site does not pay me for the time spent with you today. It is also an important part of the online process. Thank you in advance and good luck!

Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 5582
Experience: Solicitor
Jamie-Law and other Law Specialists are ready to help you