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HMRC reviews Bitcoin taxation
by Dylan Lobo on Jan 20, 2014 at 08:11
HM Revenue & Customs (HMRC) is reviewing taxation on the rapidly expanding Bitcoin industry, according to the Financial Times.
The news comes amid growing frustration by traders in the virtual currency at the 20% value added tax levied on the purchase of coins.
They feel this makes their businesses uncompetitive against foreign rivals, with the likes of Hugh Halford Thompson- founder of Bitcoin trading website QuickBitcoin, threatening to relocate his business overseas.
The Financial Times said HMRC was yet to make a final decision on tax treatment as it ‘listens’ to the industry, which has seen the value of its market rocket from $150 million to $10 billion over the last year.‘We have held constructive meetings with stakeholders, but this is a complex issue, and we will continue to listen to arguments for alternative VAT treatments under existing VAT law,’ a HMRC spokesperson told the paper.
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