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Where Taxpayers and Advisers Meet

Claiming CGT (crypto) losses

Sinne
Posts:1
Joined:Tue Apr 12, 2022 2:34 pm
Claiming CGT (crypto) losses

Postby Sinne » Tue Apr 12, 2022 3:05 pm

I have around -£5,000 in my realized profits/losses. I believe I can use these losses in my tax return to reduce the amount of income tax I pay (?)
It's my first time dealing with CGT though, and I don't yet have an accountant. So I have 2 questions:

1. Which section do I input the losses in?
2. The gov site states I have to include all computations of each disposal. What does this mean? I was using Binance future trading, and I don't think they keep trading history for longer than 3-6 months. It was also all over many 100s of small trades, it wouldn't seem realistic to spend days gathering and inputting it all.

Thank you, Sinne

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Claiming CGT (crypto) losses

Postby bd6759 » Wed Apr 13, 2022 11:14 am

You should actually have 3 questions. Your first question should be to ask if your belief is correct.

1A. You cannot deduct these capital losses from your income. All you can do is carry them forward and set against future capital gains.

1B. You complete the CGT page of your tax return, showing the total proceeds of sales and the cost of purchase. If you don’t normally fill in a tax return there is no need to do so, but you must write to HMRC to notify them of the loss, otherwise you won’t be able to use it in the future.

2. If you don’t have records, how do you know you have made a loss? You’ll need to sum up all of your trades to calculate this, and keep that as a record in case you asked about it.


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