Billy

Basically my query is how should the asset loss and subsequent partial recovery of fund should be reported from tax perspective when a crypto platform has filed bankcruptcy. I cannot find any information on HMRC related to that and so can you give some pointers to me? Also if I want to raise query on my specific case, where in HMRC can I seek support?

I am one of the customers of the new defunct Celsius Network crypto platform in the US and become one of the creditors after they filed Chapter 11 in the US on 13Jul2022. I'd like to seek your guidance about my tax position for the captioned. Here is my situation: (A) On 13Jul2022 when Celsius Network filed for Chapter 11, I have 0.13689471 BTC and 0.24837682 USDT on their platform. I become a creditor in their Chapter 11 case. (B) After a long Chapter 11 process, Celsius Network has returned 0.02599804 BTC and 0.38850761 ETH to me via my Coinbase account. The funds were returned to me on 15Feb2024 (C) My claim process has completed and I am not expecting any further fund recovery to me. (D) I start to become a UK Tax Resident for Tax Year 2023-2024. Before that I didn't live in the UK and I am not a UK Tax resident. Here are my questions: (1) Can I write off the asset as described in (A). If yes, how would it be classified and can the write off be counted in Tax Year 2023-2024? (2) How should I treat the recovery fund in (B) from Tax Reporting purpose? (3) Is there any guidelines I can follow to file this case in the Self Assessment? Many Thanks. 

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