Investment in Bitcoin - can I count this as an expense on my self assessment?

... that is of course before I sell it and, hopefully, make a profit.

Before I sell it, can I claim the cost of the Bitcoin as an expense?

 

It wouldn't be a business expense as you haven't used the Bitcoin for anything in your business.

 

It will be a cost when you work out Capital Gains Tax when you sell them.

 

Im not an expert by any means, but I have been putting money in ethereum and it has done much better than my bitcoin has.

I put a little bit of money on quite a few different crypto currencies and they have all performed better than bitcoin has.

 

Shhhhhh...

 

Not something you usually hear from crypto investors.

 

1. It's not an investment, but a gamble. Don't compare Bitcoin to buying a server or a digger. Think of Bitcoin or Deleriums as being more or less the same thing as BetFred or Foxy Bingo.

2. A business expense must be in a field relevant to your core business.

3. The full details are here - https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-tax-for-businesses

 

Its not an expense, its an allowable cost for deducting against any gains you make once you sell it.

 

Presumably you are self employed?

I'm not a tax expert, but my understanding is that your gains aren't taxable as an individual investor but are if you do it through a business

 

Your understanding isn’t correct.