El Salvador loophole could offer bitcoin traders CGT exemption

With El Salvador becoming the first country to make Bitcoin legal tender, traders could look to cut their tax bills by exploiting a loophole for foreign currencies. While profits made from moves in foreign currencies held in bank accounts are currently exempt from capital gains tax, cryptocurrencies are not. However, El Salvador’s decision paves the way for Bitcoin to receive more favourable tax treatment. An HMRC spokesman said that it does not consider cryptoassets to be currency or money.

 

The Daily Telegraph   City A.M.

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