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How do I report cryptocurrency capital losses to HMRC?
How do I report cryptocurrency capital losses to HMRC?

How do I report cryptocurrency losses to HMRC? How can I claim capital losses with HMRC? How can I offset cryptocurrency capital gains?

Daniel Howitt avatar
Written by Daniel Howitt
Updated over a week ago

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.

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 the Tax Return or by letter. 

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

 


If you don’t already file a Tax Return, you need to notify HMRC that you have capital gains or losses to report by 5 October after the end of the tax year. You can do this only here - They will issue you with a Notice to File a Tax Return and you should chase this if it is not received.

Regardless of whether HMRC issue the Notice to File or not, you need to submit the Tax Return to HMRC by 31 January after the end of the tax year to avoid late filing penalties. A tax year runs from 6 April to 5 April. 

If you made a disposal on 4 April 2019 (or started to receive income in the year ended 5 April 2019), this falls in the tax year ended 5 April 2019 and you need to notify HMRC by 5 October 2019 and submit the tax return by 31 January 2020.


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