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

Discussion in 'Accounts & Finance' started by danlikestoparty1234, Feb 21, 2021.

  1. danlikestoparty1234

    danlikestoparty1234 UKBF Newcomer Free Member

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    ... 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?
     
    Posted: Feb 21, 2021 By: danlikestoparty1234 Member since: Feb 21, 2021
    #1
  2. StevensOnln1

    StevensOnln1 UKBF Big Shot Free Member

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    It wouldn't be a business expense as you haven't used the Bitcoin for anything in your business.
     
    Posted: Feb 21, 2021 By: StevensOnln1 Member since: Dec 10, 2011
    #2
  3. Scalloway

    Scalloway UKBF Legend Free Member

    16,868 3,589
    It will be a cost when you work out Capital Gains Tax when you sell them.
     
    Posted: Feb 21, 2021 By: Scalloway Member since: Jun 6, 2010
    #3
  4. tony84

    tony84 UKBF Big Shot Free Member

    5,890 1,097
    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.
     
    Posted: Feb 21, 2021 By: tony84 Member since: Apr 14, 2008
    #4
  5. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,231 941
    Shhhhhh...
     
    Posted: Feb 21, 2021 By: UK Contractor Accountant Member since: Sep 18, 2013
    #5
  6. Darren_Ssc

    Darren_Ssc UKBF Ace Free Member

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    Not something you usually hear from crypto investors. :)
     
    Posted: Feb 22, 2021 at 7:44 AM By: Darren_Ssc Member since: Mar 1, 2019
    #6
  7. The Byre

    The Byre UKBF Legend Full Member

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    Posted: Feb 22, 2021 at 8:59 AM By: The Byre Member since: Aug 13, 2013
    #7
  8. nelioneil

    nelioneil UKBF Enthusiast Full Member

    664 95
    Its not an expense, its an allowable cost for deducting against any gains you make once you sell it.
     
    Posted: Feb 22, 2021 at 12:44 PM By: nelioneil Member since: Jan 22, 2013
    #8
  9. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    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
     
    Posted: Feb 23, 2021 at 8:51 AM By: Mark T Jones Member since: Nov 4, 2015
    #9
  10. STDFR33

    STDFR33 UKBF Big Shot Free Member

    4,614 1,232
    Your understanding isn’t correct.
     
    Posted: Feb 23, 2021 at 1:12 PM By: STDFR33 Member since: Aug 7, 2016
    #10