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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Hello Unfortunately neither the helpsheet HS284 nor the example 3 below it answer my question as they do not cover the scenario I described. Could I please get an answer to that specific scenario. I have searched extensively in HMRC documentation and studied other examples given by HMRC but none cover the scenario of my question. The answer is either : (1) 1st July disposal of 10 shares should be matched against the 7th July purchase of 10 shares using the 30 day rule OR (2) 7th July disposal of 10 shares should be matched against the 7th July purchase of 10 shares using the same day rule Is it (1) or (2) ? Thank you

In matching disposals to purchases using the share identification rules do earlier disposals always take precedence over later ones? Or should a later disposal be processed first in the case where a same day match applies to it? For example if we had : 25th June : Section 104 pool brought forward - 20 shares of ABC Ltd 1st July : Sell 10 shares of ABC Ltd 7th July : Buy 10 shares of ABC Ltd 7th July : Sell 10 shares of ABC Ltd Should the 1st July disposal of 10 shares be matched against the 7th July purchase of 10 shares using the 30 day rule? Or should the 7th July disposal of 10 shares take precedence over that (even though the 1st July disposal was earlier) and be matched against the 7th July purchase of 10 shares using the same day rule, and then the 1st July disposal of 10 shares would be matched against the Section 104 pool of 20 shares? Thanks

Hello Could HMRC please give guidance on this as it is difficult to find any conclusive information elsewhere. One suggestion has been to treat the Total Loss Amount component of the compensation as a Capital Gain with zero cost basis, and the Interest component as Miscellaneous Income. Would that be the correct thing to do? Thank you

Hello If a cryptocurrency company has an SEC case ruled against them for securities laws violations and compensation is paid out to purchasers of the tokens then is it taxable and if so should it be declared as Miscellaneous Income or as a Capital Gain on the tokens? If it's a Capital Gain and the investor gets to keep the tokens then would they just use a cost basis of zero? A compensation payment is made up of a Total Loss Amount component and an Interest component, the latter dating from when the tokens were first purchased. Would these two components be treated differently? An example of one such case is Veritaseum : https://verifairfund.com/ but there will likely be numerous others to follow. Thank you.