How to claim capital gains tax (CGT) relief on crypto losses and report them to HMRC

Crypto assets can generate significant gains, but they can also produce substantial losses. Falling token values, failed exchanges, inaccessible wallets and other events can leave investors holding assets worth far less than they originally paid for them.

Where a loss qualifies for tax relief, it may be possible to use it to reduce current or future capital gains tax (CGT) liabilities. However, the rules are not always straightforward and opportunities can be missed if losses are not identified, calculated or reported correctly.

This article focuses on crypto losses for UK resident individuals who hold crypto assets as…