Crypto Capital Gains Tax

sjh101

Hello, 

I have been investing in crypto since February 2021. I have recently been trying to work out my profit/loss since then. On a very basic level looking at the money ive deposited from my bank account alongside the current value of all my assets I am negative 700 pounds. I know its much more complex than just deposit and value though. 

How would it work in regards to next years tax year amount baring in mind that Ive made a loss of 700 this year? I'm assuming the CGT allowance doesn't roll over? I'm aware that I can offset my loss into next years allowance so does that mean instead of 12,300 allowance I would have 13000? 

I'm in the process of trying to make a note of every transaction from now on to make sure I'm not caught out if I happen to make a significant amount of profit. 

Thanks 

[Deleted User]

You can carry forward capital gains losses indefinitely but should declare them. The methodology is slightly different from what you state. 

If, for example, you made total gains of £1000 in 2022/23 you would not require to utilise this loss as the £1000 would be covered by the annual exemption of £12300. So the calculation would take the form:

Total gains £1000 covered by annual exemption. Loss brought forward £700 not utilised. Loss to be carried forward £700. 

If you made £12500 total gains - £12300 would be covered by the annual exemption. Loss brought forward £700 with £200 now utilised. Loss carried forward £500.

https://www.gov.uk/capital-gains-tax/losses

Keep_pedalling

Is this a paper loss or have you actually sold at a loss? If the former you don’t have any actual losses to carry over.