HMRC -fiat USD deposits

Are currency gains/losses included in the HMRC reports? I deposited USD into a fiat account (at Kraken) to fund my purchases of Crypto. I bought the crypto with the USD. At a later date I sold the crypto into USD. Then transferred the USD out of my Kraken account. When I generate UK tax reports, are any gains/losses on the USD included? I’m trying to ascertain whether I need to report any further currency gains losses related to the USD fiat to HMRC.

Not exactly sure what gains losses you are talking about. If you have you country set to UK and the base Courtney is GBP it should be calculating everything correctly. Any non GBP deposited has a GBP value associated to them with the exchange rate at that time. Just like a crypto trade has a GBP value associated to it. All gains are calculated using GBP values so every thing should be correct in your report.

Now any fees/cost of paying USD (or any fiat currency) into Kraken are not allowed to be offset against gains as they are not a trade see HMRC crypto manual CRYPTO22150 - Cryptoassets for individuals: Capital Gains Tax: allowable expenses - HMRC internal manual - GOV.UK

Hey @Christine_M,

Although we cannot give tax advice directly, Adrian’s guidance above would be correct. Every time you make a disposal, this counts towards your realised gains/losses. As he explained, USD trades/deposits/withdrawals would simply have a value in GBP associated with them. And they would be reflected as such in your reports.