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Posted Tue, 21 Jun 2022 14:48:42 GMT by Edward
Hi, #1 On two cryptocurrency exchanges, Coinbase and Gemini, I invested in some cryptocurrencies & tokens which I have subsequently sold resulting in capital gains and losses that I will need to declare. In the SA108 Capital Gains Tax Summary pages should I declare these transactions in the "Listed" or the "Unlisted" section? #2 For reading some introductory information material about a few cryptocurrencies I was rewarded at zero cost with a few tokens worth in total about £22 at the time. Should this one-off amount be included in the SA100 tax return? If so, as it is not income nor interest, where in particular should this amount be included please? Thank you. Regards Edward
Posted Wed, 22 Jun 2022 08:26:40 GMT by HMRC Admin 17

You will need to check to see if either is actually listed on the stock exchange to determine which category they fall under.

The £22 does not need to be declared as this was the estimated value at the time if you were to sell them  .

Thank you.
Posted Wed, 22 Jun 2022 15:27:59 GMT by Edward
Hi, Thank you for your reply. Could you clarify further your answer to #1 please? Coinbase and Gemini are two cryptocurrency exchanges where Coinbase is a public company listed on Nasdaq while Gemini as a private company is not listed. Bitcoin, Ethereum and other cryptocurrencies, coins and tokens trade on many different exchanges as they are unregulated decentralised digital assets that exist on the blockchain. In HMRC's authorised exchanges section I could not find reference to any cryptocurrency exchange. Similarly, in HMRC's cryptocurrency manual capital capital gains section I found no indication with regards to which section in SA108 they should be included. I understand that the "Listed shares & securities" section of Capital Gains Summary (SA108 Boxes 23 to 30) and "Unlisted shares & securities" section (SA108 Boxes 31 to 38) cover shares, bonds, funds and regulated securities the on differentiator being whether the exchange is an authorised exchange according to HMRC. The notes include cryptoassets in the list of assets to report for capital gains purposes but do not indicate in which section they should be reported. Should I report capital gains & losses for the cryptoassets I bought and sold in the Unlisted section of SA108 i.e. in Boxes 31 to 38 of SA108? If not, where? Thank you. Regards Edward
Posted Thu, 23 Jun 2022 11:49:57 GMT by Edward
Hi again, Having reread SA108 Capital Gains Tax summary notes and form, as well as some relevant sections in HMRC's capital gains manual, I think I should report capital gains & losses deriving from the sale of cryptoassets in the "Other property, assets and gains" section (SA108 CG1 Boxes 14 to 22). In SA108 capital gains can be reported in four different sections : 1. Residential property (and carried interest); 2. Other property, assets and gains; 3. Listed shares and securities; 4. Unlisted shares and securities. I think that as cryptoassets are neither residential property, nor shares and securities (whether listed or not) they are "assets not covered elsewhere" in SA108 whose capital gains or losses - according to the notes (SA108 CGN 5) - should be included in the "Other property, assets and gains" section. Am I correct? Thank you. Regards Edward
Posted Fri, 24 Jun 2022 11:49:15 GMT by HMRC Admin 20
Hi Edward,

You should enter the cryptocurrency  disposals in the Other property assets and gains section boxes 14-22

Thank you.
Posted Fri, 24 Jun 2022 16:16:22 GMT by HMRC Admin 20
Hi Edward,

You would report Cryptoassets on page CG1 boxes 14 - 22. 

Thank you.

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