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.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 31040
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

I invested in bitcoin but, now want to get out of it. I am a

This answer was rated:

I invested in bitcoin but, now want to get out of it. I am a Canadian in Canada. They tell me I need to pay income tax to the UK at 23% on the whole amount, even the personal amount I put into the investment which was Canadian dollars, that I earned in Canada. They say I need to pay it to them and they did not send me an invoice from the UK
JA: Which tax year is this for?
Customer: It was all for this year
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: They tell me I have to pay this out before they re-imburse me my investments

HMRC taxes cryptocurrency depending on how you deal with cryptocurrency.

If you hold cryptocurrency as a personal investment, you will be subject to Capital Gains Tax rules. This means that you are taxed on the capital gain at the time the cryptocurrency is disposed of (e.g. sold, traded, used for a purchase, etc.). The capital gain is the difference between the GBP value of the disposed asset at the time of the disposition minus the GBP value of the disposed asset (how much you paid for it) at the time it was acquired.

Capital gains tax (CGT) generally only applies if you are resident in the UK.

Customer: replied 13 days ago.
I am not a resident of the UK, live in Canada. So I subtract the Deposit amounts from the total value and I owe the taxes on the differences. I assume this is right.... Thank you

Correct

TaxRobin and other Tax Specialists are ready to help you