Disclaimer: This article is intended as an informative piece. This is not accounting or tax advice. Please speak to a qualified tax professional about your specific circumstances before acting upon any of the information in this article.

Individuals who purchase cryptocurrencies that then proceed to fall in value and then they realise those losses may have capital losses that can be claimed with HMRC. All  capital losses should be reported, as it is the only way they can be ‘claimed’ to use against future gains. Losses can be reported to HMRC on a Tax Return or by letter.


The time limit for claiming capital losses is within 4 years of the end of the tax year within the end of the tax year in which the capital loss was realised.

Tax loss harvesting can be very useful in order to reduce capital gains or allow you to file a capital loss for the year. The general process is to identify investments that have declined in value and sell them near the tax year end to realise the losses. Following this, they will be repurchased with a new cost basis. This can be done with cryptocurrencies, but the assets cannot be rebought within 30 days of the disposal or they will fall under the “bed and breakfasting rule”.


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