Do you need to pay tax on your cryptocurrency investments?

the question around taxation and cryptocurrency is an interesting one and obviously each country jurisdiction has its own tax rules so in the in the US for instance the IRS and the Securities and Exchange Commission they deem cryptocurrency to be like property so if you make gains on it you're supposed to pay pay your tax on it now I read a statistically the day there's three hundred and twenty five million people just short three hundred twenty five million people in the US and a good number of those you know many tens of thousands you would anticipate our trading cryptocurrencies and making money in crypto currencies and the IRS say that you must disclose all gains and losses and cryptocurrency in your federal tax return at the end of each year and in 2015 there were just 802 American citizens who declared that so if they choose not to declare it there is no way of knowing how much money they've made or lost even if they got round it another headache for the tax authorities if they suddenly move into the space and say look say with HMRC let's say they came out and said look anyone investing in cryptocurrencies will pay capital gains tax any individual even if it's not a trade they will pay capital gains tax now if they did that they would make a lot of money right we would all have to declare potentially but they potentially make a lot of money but then if under the scenario where cryptocurrency start to fall and it all collapses is one giant bubble which many people say will happen and suddenly you've got a lot of people who have made a loss and not just a loss they made a text allowable loss it's a loss which they can then offset there's various complicated rules around it but they can then use that that loss to offset their tax in other parts so from a tax authorities perspective you kind of damned if you do and damned if you don't so you really are between this rock and a hard place now for the UK in terms of what what's the policy if you do it for a living then you're gonna pay income to actually gonna pay caps look at everything you will pet you'll pay in the normal way as if you were a lecturer or a consultant a builder you will pay on your cryptocurrency now for most people it's not a trade for most individuals it's something that they put a few quid into and they're hoping to do well out of it and what HMRC have said is that it is deemed to be highly speculative which in their view means you're betting which means there's a very real chance you'll lose I think if you win you pay no tax on it but if you lose you get no tax relief on it either because it's a non taxed activity and that's what cryptocurrency is but the caveat HMRC I put on it is said that each case will be viewed on a case-by-case basis and I think for me it's deliberately nice and broad so if they choose to come back and revisit this and say actually this is our policy they can then use that and expand on it

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