UK Tax when gambling Bitcoin

[lucas]

Hello,

I need to send records for the 2021 tax year. All I did in the way of crypto during this year was gamble with Bitcoin using Coinbase to send and receive the Bitcoin.

Buy Bitcoin using GBP in Coinbase > send Bitcoin to sports book

If I won a bet:

Receive Bitcoin in Coinbase > sell Bitcoin for GBP > withdraw GBP to bank account

Overall that tax year, I lost a small amount of money.

When I use Koinly with my Coinbase account it shows a negative amount of capital gains, which is good however I’m not sure why. I was expecting it to show thousands of pounds from my winnings and I assumed the original purchase of the Bitcoin wouldn’t have counted as a loss, because I simply sent it to the bookmakers wallet.

Is anybody able to explain how this works?

Thanks

[Mathias]

Hello @lucas,

In certain cases, it can happen that withdrawals will realize gains/losses. This can often be the case when there is no receiving wallet added to Koinly. For more information on this, please see our article here.

To have a closer look into this for you, we’d need to able to look at all relevant transactions. Can you please reach out to us so we can investigate this further for you?

[lucas]

Thanks, I have sent an email.

I suppose once it’s showing the correct values, I would have to add the betting as realised profits and loses?

Thanks