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Posted Wed, 16 Nov 2022 18:34:47 GMT by GaryW121
Hello, I have read the HMRC Crypto Manual but have 2 questions: 1) In 2021/22, I purchased $100 into Bitcoin (BTC) with Coinbase, and received 10% extra BTC as a bonus. Is that purchase bonus taxable as miscellaneous income? (I do not trade crypto enough for it to qualify as a trade). 2) Every so often on Coinbase, I view information on and answer a quiz about a new coin and I get about $3 to $4 worth of that new coin. Its a reward for being educated about the coin in the hope I will spread the word/ hold the coin for the long term. Is that reward taxable as miscellaneous income? Thank you in advance
Posted Tue, 22 Nov 2022 10:59:35 GMT by HMRC Admin 32

From the information provided in the question please refer to guidance here:

CRYPTO21000 - Cryptoassets for individuals: Income Tax

Essentially where there is no disposal and activity does not amount to trade, the tax position is determined as to whether BTC is received for an action, related to a service or other conditions. Such income would be taxed under miscellaneous income.

You can find further guidance on miscellaneous income here:

BIM100000 - Miscellaneous income

Thank you.

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