Bitcoin taxation under review by HMRC

The Financial Times has reported that HM Revenue & Customs (HMRC) is reviewing taxation on the rapidly expanding Bitcoin industry.

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.