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.

Please note that the Celsius bankruptcy tool has only been designed to work with UK tax calculations.

Our Celsius bankruptcy tool enables you to generate a tax write-off within Recap aligned with key principles of exchanging contractual rights. This tool has been developed after months of collaboration with our accountant partners Andersen LLP and the CryptoUK working group.

We strongly recommend using these features in collaboration with your tax adviser. You can invite your accountant or adviser into your Recap portfolio using our agent sharing feature.

For a detailed explanation of each setting, please see below.

The Beneficial Ownership Transfer Date marks when ownership of your assets was transferred to Celsius.

When you set this date, Recap records a disposal of your assets in exchange for asset rights on that date. This can potentially result in significant taxable gains or losses, depending on the acquisition costs of your assets.

By default, this is set to 15 April 2022, when Celsius updated their terms of use. However, it is for you to determine, ideally with your tax adviser, when you believe Celsius became the beneficial owner of your cryptocurrency.

The Write-Off Date for all remaining exchange rights is the date when these rights are considered worthless. By default, this is set to the date when Celsius officially filed for bankruptcy.

It is for you to decide when it became evident that Celsius could no longer meet its obligations to return your assets.

This setting writes the contractual rights down to zero in your Recap calculation, producing a realised loss. Whether that loss should be claimed, for example through a negligible value claim, is for you to decide with your tax adviser.

This setting determines when loan collateral is exchanged for a loan collateral right.

Depending on the acquisition costs, this could result in substantial taxable gains or losses, so make sure to carefully evaluate and decide based on your specific situation.

Please enter the distributions you received as part of the bankruptcy process. For each distribution, include the following details:

By default, we use the valuation prices agreed upon in the bankruptcy reorganisation plan, effective 31 January 2024.

Celsius has since made further distributions to creditors. If you have received a later payment, enter each one here as a separate distribution. Our guide on how to account for Celsius's second bankruptcy distribution walks through finding the payment and recording it.

Recap treats each distribution as a disposal for Capital Gains Tax (CGT) purposes. Because the write-off will usually have reduced the allowable cost of your remaining rights to zero, a distribution typically results in a taxable gain.

Please enter the amounts of BTC, ETH, and Shares you have paid as part of a clawback. For each payment, include the following details:

Recap treats the value of these payments as chargeable losses, which may offset any gains from your distributions.