Readers’ forum: Income and crypto mining

20 March 2023

Issue: 4881 / Categories: Forum & Feedback , Business , Companies , Partnerships

Bitcoin mining rigs

Our UK resident and domiciled client bought 26 Bitcoin mining rigs in November 2021 for £193 000 with a view to profit. Her daily income from mining Bitcoin totalled £45 000 net of costs in 2021-22 and similar income in 2022-23 to date reflecting the fall in value of Bitcoin.

The mining rigs were bought from a UK company but are hosted and located in Iceland by a related company. Our client is not connected to either company. She has a service agreement with the EEA hosting company that deducts 25% of the gross mined Bitcoin for energy usage plus their 10% service fee for setup and maintenance of the miners. The mined Bitcoin units are credited to her wallet daily net of these charges. She spends no time on the mining and has no knowledge in IT or crypto. She was introduced to the hardware supplier...

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