Hi all. I began investing in crypto at the start of January 2021. I did not exceed £12,300 gains before April of 2021, but I have exceeded it since then so I will have to pay CGT for the financial year 2021-22. I plan to sell ALL my crypto into fiat before April 2022, so can I simply do a money in vs money out calculation and pay CGT on that? Has anyone actually gone through the declaration stage of CGT with regards to crypto (this will be my first time), do they ask for proof of all individual transactions or can you just declare a total amount in gains? I have no desire to avoid any taxes, and I don’t mind overpaying a little by doing money in vs money out. I’d really appreciate any responses, especially on what the process of declaring Capital Gains on crypto is like in the UK
Had to do it this year. The HMRC guidance states you should attach your calculation so I just attached the full report from Koinly to my tax return and used the numbers from it. HMRC has very specific guidance as how to calculate capitals gains so its not as simple as doing a money in money out calculation. If you have only done a few trades you could probably calculate it yourself but any more than a few trades it becomes way to involved so is best to use a service like Koinly (especially if you have been buying and selling the same currency a lot as you have to consider same day rules, 30 day rules and section 104 pools). Luckily Koinly does that for you so its a relatively simple task to file your tax return.
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