Hi
I am filling my first ever self-assessment for the last tax year (2020-2021). In addition to the income from my freelance work, I invested a total of 6000 pounds over a couple of months in various cryptocurrencies last year. I have not sold any currencies and have not withdrawn any money from my wallet but I have done a couple of transactions where I converted one cryptocurrency to another one on the same platform. The gains from these transactions won't be much (maybe a couple of hundreds at best).
Also, because of the fall of the market, my initial investment has now lost around 30% of its original value.
Reading the HMRC guidance, I understand that conversion of cryptocurrency counts as "disposal" and I have to report any gains made in these transactions.
Can you help me with the below questions:
1. Do I need to calculate and report the gains from these conversions, knowing that they won't be more than the capital gain tax-free allowance of 12300? ( I don't have any other assets or gains from other sources)
2. If I have to declare the gains from these transactions, do I have to calculate the gain based on the value of the cryptocurrencies on the day of conversion or today?
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