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Posted Sat, 09 Mar 2024 15:08:03 GMT by 8baLplaY25
In most cases to me CGT seems straightforward if you make a single purchase and in most cases for multi purchases. For example you buy 100 tokens at certain price. You then sell those tokens later for a massive profit. The gain is the difference minus any allowances. There is a slightly different situation that confuses me and I wonder how you would workout the CGT on the example below Rather than a one time purchase you purchase a cryptocurrency several times on various occasions over several months . You know what you’ve spent in total on this cryptocurrency . You know what your average cost basis is, by dividing money spent by total number of coins/token. However, if you transferred the coins in several stages off a crypto exchange to a hardware wallet, more than likely will incur a small fee to complete the transfer. You will use the underlying crypto asset to pay this. My understanding is that transfers are not taxable event. Here is the main question… Example. You buy x pounds worth of ETH and receive 12.76 coins/tokens You move your Eth total over time through several transfers to another wallet. You are charged some Eth when doing so. Your total ETH is now 12.72, due to transfer fees. So what you have now is a lower total from the original outlay. How does this get worked out for CGT treatment when you sell the lower balance, bearing in mind you had a larger balance before moving the ETH I hope I’ve explained this for you to follow and hopefully you can offer some direction Thanks
Posted Wed, 20 Mar 2024 13:04:48 GMT by HMRC Admin 20 Response
Hi 8baLplaY25,
Please refer to CRYPTO22000 - Cryptoassets for individuals: Capital Gains Tax for details of how Capial Gains is considered when transferring Crypto assets.
Thank you.

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