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For a while now I have been mining and have now got 5 Bitcoin which I'm ecstatic about as it means once I have the money for it, I'll be £13k richer and can put a deposit down on a house.
Whilst I can mine and know how to sell the Bitcoin, I don't know how I'd do these legally.
If I simply just sell them, surely I'd need to put tax on them or something to comply with UK tax laws?
If I was to use the money to put a deposit down, they're going to want to know where the money has come from and whether it's legal money and no doubt the bank will go through my accounts very precisely.
1Spend some of your newfound wealth on a consultation with an accountant. – Nate Eldredge – 2019-02-14T18:30:15.800
One issue with using it or a mortgage deposit, is banks tend to view your act of saving of the deposit as evidence that you have the means to pay back the monthly mortgage payments. If you suddenly come across wealth but have not demonstrated an ability to save money on a monthly basis, the bank won't necessarily see you as being able to pay back a mortgage. Perhaps the correct thing to do would be to cash it in once a month as if it were a wage, and then attempt to use it as your mortgage deposit in 12 to 18 months. – Mark H – 2019-02-15T01:06:04.590
Also, I think earnings from Bitcoin come under capital gains in the UK, which means they'll be taxed as part of your income depending on how much you earned in total. Check the information available on the gov.uk website. – Mark H – 2019-02-15T01:08:30.050
Mark H, thanks for the advice. I am able to afford a mortgage easily and have also been saving from when I earn from my job. I have an amazing credit score, no debt and a highly paid job so I imagine I'll be accepted no problem, in fact I already have a few offers. I'd just hate to be open to getting fined or jailed for tax evasion or something. – Ember – 2019-02-15T09:43:04.947