Automated Bots - Income or Capital Gains with HMRC in the UK

Tax Questions
#1

Hello,

I have been using personal money with automated crypto bots for the last 3 months, and I am wondering whether this should be classed as income or Capital Gains?

There have been 8000 automated trades by these bots, most generating $0.5 to $1.50 in profit each, and I’ve maybe made $5,000-$6,000 in profits over the last 3 months. This is hands off, as I am investing money in a bot someone else has created, but it is in my 3commas account. Basically, the company had a course which I paid for, I watched the instruction videos, and invested money, but the money is through my crypto account.

I feel it should be capital gains, as I’m not sitting at a computer looking at charts, and making reasoned trades like a day trader. I’m certainly not a trader by any means, as I run an internet marketing company.

Thanks for the advice!

#2

Hey @Jamie_Funai

Thanks for reaching out. :+1:t2:

Good question, but unfortunately it’s not one we can answer as we’re not able to give tax advice.

You should contact a CPA well-versed in cryptocurrency, or your local tax authority as they’ll be able to tell you.

There may also be info here depending on the country you’re filing in - https://koinly.io/blog/tags/guides/