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Posted Wed, 14 Jul 2021 21:50:40 GMT by morningsh
Hi I am filling my first ever self-assessment for the last tax year (2020-2021). In addition to the income from my trading, 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 I have not sold any currencies and have not withdrawn any money from my wallet but I have done a couple of conversions where I converted one cryptocurrency to another one on the same platforms. 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?
Posted Fri, 16 Jul 2021 11:23:20 GMT by HMRC Admin 9

You only need to report any taxable Capital Gains. So if the gain is below the Capital Gains threshold then these do not need to be reported.

Further guidance on cryptocurrancies can be found here:

Cryptoassets Manual

Thank you. 

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