Britain preparing to end plans to tax Bitcoin trading: FT
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[March 03, 2014]
(Reuters) — Britain's revenue collector is preparing to abort its
plans to tax Bitcoin trading only days after the currency's leading
exchange, Mt Gox, collapsed after losing almost $500 million of
customer deposits to hackers, the Financial Times reported.
HM Revenue & Customs said in a meeting with UK traders that it would
no longer levy 20 percent value-added tax (VAT) on bitcoin
transactions and also said it would not tax margins either,
according to the paper.
The British support for the currency comes days after Mt. Gox, once
the world's largest bitcoin exchange, was sued by a customer in the
United States seeking to recover money lost in the hacking attack.
Corporation tax and other taxes would still apply, according to the
The market for bitcoins — a virtual currency created or "mined"
through a process involving a network of computers that solve
complex mathematical problems — is worth about $7 billion at current
The currency has been facing regulation issues worldwide, having
already been banned by some countries.
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"HMRC has been working closely with the bitcoin industry on the tax
treatment of trading in bitcoins and commission. We will be issuing
guidance shortly," the UK tax authority said.
(Reporting by Tasim Zahid in Bangalore
and William Schomberg in London; editing by Phil Berlowitz)
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