AlexL

My understanding is that crypto currencies are subject to income and capital gains tax. Capital gains takes allows for capital losses of one asset to offset capital gains of another (in terms of tax liability). Is there a comparable allowance for income tax? i.e. In a theoretical situation, suppose an individual receives £100,000 in a crypto currency (market value at time of receiving it) in return for having delivered some product or service (therefore many thousands of pounds are now owed to HRMC in the form of income tax). Let's say that shortly after receiving this 'income' the crypto currency crashes and the market value has now fallen to practically zero. Is this individual now still liable to pay many thousands of pounds to the HMRC through absolutely no fault of their own? How are they expected to fund this?