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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You have not broken any laws. Trading in Bricoins is perfecty legal, however any profits you make are subject to Income Tax (IT) at your marginal rate. Capital Gains Tax (CGT) does not come into the equation at all. You must declare your bricoin trading profits to HMRC as self employment income at the conclusion of each tax year [5 April]. You register for self employment with this form:
Trading on behalf of your friends was perhaps not the best idea. The way to escape from this is to transfer the bitcoins to their own accounts and leave them to declare their respective profits to HMRC.
I do hope that you have found my reply of assistance.
Unfortunately, another example of confusing guidance issued by HMRC from which they can make the cat jump in whichever way they find convenient ie the one that yields the most revenue. However, if you are not day trading I assume that you can rely on it and ultimately make a gain which will come under the CGT regime. In that case you have an Annual Exempt Amount (AEA) of 11.3K to offset any gain.
I have already advised how you escape from your commitments to friend and family. An investigation by HMRC is most unlikely and, in any event, you can show that no money laundering has taken place, just simple over enthusiasm.
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