Officials at HM Treasury are reportedly studying how to tax bitcoin trades, it is being reported. The kick in the rear comes from Karl McCartney, member of parliament, who asked what the country is doing in terms of financial regulation of the emerging would of digital currency. McCartney feels officials are being too slow to address regulatory concerns.
David Guake, Treasury Minister, confirmed that discussions regarding the taxation of bitcoin trades are ongoing with “stakeholders”, with the possibility that a VAT will be applicable on all bitcoin trades.
Such a tax could be in the neighborhood of up to twenty percent.
“This is a new and complex issue and the appropriate VAT treatment is currently being considered. HMRC will publish guidance shortly,” said Guake to the London Evening Standard. “Whilst no rushed legislation is usually good regulation, one would hope that Treasury ‘experts’ would have been working to ensure the City of London leads the world with regard to any ‘new’ currency trading, promoting best practice, rather than sadly lagging behind other world currency trading centres, as seems to be the case here.” (via London Evening Standard)