HMRC Bins Plan to Tax Bitcoin Transactions

By Gary Cutlack on at

The UK may soon emerge as one of the world's bitcoin safe havens, after tax inspector HMRC revealed it's giving up on its plan to add 20 per cent VAT to transactions made in the virtual money.

The news comes via a meeting between HMRC and a group of traders, with the end result being a decision to give up on the idea of adding VAT to all bitcoin trades.

The move isn't quite as significant as HMRC suggesting it thinks bitcoin should be considered and treated as a standalone currency, but it does mean businesses using the internet money can now do so without fear of being taxed into oblivion. [FT via Reuters]