Fraser Scott

So can a software program be used to calculate the capital gains for share trading ? And then we submit the output from that program to HMRC with our SA108 tax return ? Or must we do it by hand and submit the calculations to HMRC ?

This is different from a bank interest. If you don't pay the transaction fee then the interest you receive is zero. There is a cost to getting the interest. That doesn't happen with bank interest where you don't have to pay a fee to receive it, it just comes automatically. Crypto staking does not work like that. In some cases the transaction fee could exceed the staking interest but the user has to incur the fee otherwise they won't get their coins back at all. I don't see how you could get taxed on income you haven't received or on a negative amount of income, whether that income is classed as 'interest' or any other word is used to describe it. Receiving a tax bill for a zero or negative income just doesn't make any sense and I don't think it could be upheld.

If you stake a crypto token which returns some pre-defined amount of interest rate, so that you are due income tax on the interest which you receive, can you deduct as an expense from that income a transaction fee incurred on the Ethereum network for the running of an 'end stake' smart contract that has to be run to end the stake ?

Apologies my first question is not made clear - where it says "I wonder whether the Capital Gains calculator" the Capital Gains calculator I am referring to may be found online by searching for "CGTCalculator online capital gains calculator for UK share trades" - where there is no space between the "CGT" and the "Calculator" in the first word.

I wonder whether the Capital Gains calculator is approved by HMRC for making calculations of Capital Gains for shares transactions using the HMRC share identification rules for share trading activities (same day rule, 30 day rule, and section 104 pooling etc), for inclusion on tax returns ? What other software may be used for such calculations that HMRC approve for use on tax returns ? Thank you

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