Taxes - again!

[Rotellian]

I have a question, no idea if it can be answered.  It looks like in the UK CGT is due whenever a trade is made.   From using cointracking it looks like trades within the exchange can be correctly extracted and gains losses reported  -although there is still the issue of being liable for the tax as calculated at the time of the trade, which due to the volatility of the market could mean you end up with a tax bill larger than your profits if you were unlucky - frequent withdrawals should minimise this - but for me this may call into question the taxability of these trades in the first place as it can be seen as risky and highly speculative.

 My question though is when withdrawing btc into fiat (gbp in my case) i would surely need to know the price of any bitcoin obtained as profit in order to be able to determine if there is any gain to pay tax on.   I cannot see anyway this can be found from within cointracking or anywhere, it being particularly complicated as its all being continually re-traded in small amounts.     

Any insights into this greatly appreciated!

[dmains]

My question though is when withdrawing btc into fiat (gbp in my case) i would surely need to know the price of any bitcoin obtained as profit in order to be able to determine if there is any gain to pay tax on.

Not only that, you'd need the GBP value of BTC when you bought it and the GBP value of BTC when you traded it for an alt, to track the gain/loss.

Then you need the GBP value of BTC when you sell the alt to track the gain/loss on the trade. This is your new cost basis for the next trade!

Doing taxes this way would be a nightmare, and is a good candidate for malicious compliance. Maybe if some people manage to track all this, and file tax reports the way govts want us to, they will change their tune!

[Rotellian]

Malicious compliance!  I admit I didn't realise that could even be a thing with regards to tax (for the most part that would suggest to me the rules aren't fit for purpose, as likely in this case)

 Whole thing is currently putting me off from trading as I can't see how I would work out the tax other than you describe (which is indeed a nightmare).

 Happy to pay taxes (ok, happy not really the word), but would be more sensible to send a list of gains/losses for assessment and then be told what was owed.  As opposed to trying to figure it out with little to no guidance from them only to be then later be told its wrong (or worse being done for avoidance!).   Guess I'll try and talk to an accountant, although initial contact indicates they don't really know.  (A call to HMRC wasn't exactly helpful either).