On local currencies and the Brixton Pound

Anyone actually know what the tax treatment of local currencies like the Briston Pound, or Totnes Pound, the Lewes whatever it is is?

Are transactions free from VAT? Income free of income tax? NI?

6 comments on “On local currencies and the Brixton Pound

  1. The Lewes pound consists of a scheme whereby picturesque ‘local’ shops selling exotic Lama cheeses and such, all agree to accept ‘vouchers’ people buy for no other reason than novelty.

    Its only a promotional thing , not a true currency .There is no general acceptance or exchange with other currencies except at designated shops in the scheme . I was amazed at all the publicity it got and I doubt there are any tax implications .

  2. “Its only a promotional thing , not a true currency .There is no general acceptance or exchange with other currencies except at designated shops in the scheme . I was amazed at all the publicity it got and I doubt there are any tax implications .”

    I was just going to write the exact same thing about fiat currency right up until the point they enacted legal tender laws.

  3. I’d be intrigued to know the HMRC treatment of Orange RockCorps for income tax purposes. For those that don’t know the idea is you do 4 hours of community service/volunteering and they give you a ticket to a concert. The tagline is along the lines of “Give. Get Given”. It sounds a lot like paid work to me, on which income tax should be paid.
    If not, then can I “volunteer” for 48 hours a week for a company of my choosing and get given some money in return?

  4. Kay Tie is correct; benefits of any sort are income, and even if all your income is in these local currencies you still have to pay tax in legal tender. The Revenue will happily invent a figure in sterling, and it’s up to you to prove it wrong.

    The same applies to all the informal ‘token’ economies where solicitors and accountants and plumbers and the like trade ‘an hour’s work’.

  5. Yeah–and don’t forget–that if there’s sales tax on any item in such transaction, that would be due as well.

    New York City has a sales tax (8-1/2%, I think) that even applies to the purchase of gold coins (and whether to bullion I can’t say); there may even be a NY state sales tax on such transaction.

    I’m surprised they don’t make their sales tax applicable when someone asks for “change for a dollar”; after all, they could count it as a “sale” of the four quarters.

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