Hi all,
I’m using Koinly for UK crypto tax reporting and have a question about how to correctly tag a withdrawal so it is not treated as a disposal.
Scenario:
- I imported my UK Kraken transaction history into Koinly
- The last transaction is a withdrawal / send of all my BTC
- The BTC was transferred to my own Kraken account in Hong Kong
- Beneficial ownership did not change (same person, just different exchange account)
Because the receiving wallet is not known to Koinly, the transaction is currently being treated as a disposal, and a capital gain is calculated.
I do not want to import my HK Kraken account into Koinly, as it is outside the scope of my UK tax reporting. I only want the UK side to correctly reflect that this was a wallet-to-wallet transfer, not a taxable event.
Question:
What is the correct tag or method in Koinly to mark this withdrawal so that it is treated as a non-disposal transfer?
The available tags I see are:
- Gift
- Donation
- Lost
- Loan fee
- Margin fee
- Cost
- Tax
- Loan repay
- Margin repay
- Realized P&L
- Funding fee
- Futures fee
- Pool in
None of these seem appropriate, as they all appear to imply a disposal or other taxable event.
Is the recommended approach:
- To manually mark this as a Transfer / Internal transfer?
- Or to create a manual matching deposit purely for reconciliation?
- Or is there another supported way to handle this scenario without importing the receiving wallet?
Any guidance from Koinly staff or users who’ve handled cross-exchange self-transfers would be much appreciated.
Thanks in advance.
PS: In 2025 end of March I migrated to HK from UK. I now reside in HK and I do not intend to return to UK (besides maybe 1 week/year to visit mum). I understand about the 5-7 year tax rule.