UK Claiming/Reporting Negligible Loss to HMRC via Self-Assessment

Tax Questions
#1

Scenario … following a self-custody wallet being drained during a hack, and after reading a discussion from Jan 23 (Adrian_Mann) re recording such losses in Koinly, I have recorded affected coins as TRADES at a cost value of £0.01 (to record loss) & recorded same coins as DEPOSIT with a value of £0.00 on a date after 31 days (considering B&B rules & as I believe HMRC still requires me to acknowledge ownership).
Can anyone advise me on the following:

  1. where/which section do I record these losses on my self-assessment online form?
  2. these losses mean I am showing in Koinly Capital Gains P&L of -£1,000.00. Should this change before the end of Tax Year 2024-25 (ie extra Capital Gains of £4,500), my understanding is that I am liable for tax on £500 - correct?

re Evidence/Proof of Theft - I have several emails To/From the wallet HELP reporting the loss, copies of their replies/investigation/conclusion, also my reporting to Action Fraud &crime reference number, but do I need to send these to HMRC automatically or wait to be asked for them?

#2

Hi @EMc

I recommend consulting a tax accountant for guidance on how to report this on your self-assessment form and to confirm your understanding of the tax implications.

You can also check out our UK tax guide - Crypto Tax UK: Expert Guide 2025

#3

Hi @EMc,

Please see responses to your questions below:

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#4

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