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Interesting - so wait, if I send someone in the UK bitcoin and they sell it immediately for GBP, does that count as a capital gain? Or just if the price change
by wgerard 8y ago
Interesting - so wait, if I send someone in the UK bitcoin and they sell it immediately for GBP, does that count as a capital gain?
Or just if the price changes between when they receive it and convert it to GBP?
EDIT: I guess it doesn't really matter in this case since presumably short-term capital gains rate is similar (or equal) to the income tax rate, but just curious for my own sake.
- tom_ 8y agoThe gain is the difference between the value when they got it and the value when they sold it, so probably nothing if they do both on the same day. I guess you may have made a gain when you gave the Bitcoin away, since it's treated as a disposal at the market rate... maybe? I don't know the rules for this. (Regarding speed of selling - there's no short-term CGT rate in the UK, but there are rules about quick turnaround that may apply. Consult an accountant.)