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.

Losing the public or private keys to a wallet containing your cryptoassets cannot be treated as a disposal for capital gains tax purposes. 

However, if the individual can show that there is no prospect of recovering the cryptoassets, they can file a negligible value claim in the Tax Return to claim the loss for these cryptoassets. This loss can be used to reduce gains in the same tax year or be carried forwards to reduce future capital gains.

Need to sort out your crypto taxes? Use
Recap, the privacy focused cryptocurrency accounting software to calculate the taxable gain or loss on your cryptocurrency investments!

Did this answer your question?