How to turn my bitcoins into legal money 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.
Bitcoin acquired through mining are treated as income and subject to Income Tax at the appropriate rate (perhaps 40% if you also have a highly paid job). You'll need to declare this income in sterling equivalent. I believe you'll also be subject to NI contributions on those Bitcoin earnings.

If earned Bitcoins subsequently increase in value, I suspect the increase will be subject to Capital Gains Tax.

As others have said, employing a qualified accountant would be a sensible action.




HMRC Brief 9 - Bitcoin and other cryptocurrencies