CGT on Cryptocurrency

startrim

I regularly invested in a cryptocurrency over the past couple of years and have printed out all of the buy transactions.
I recently sold 25% of my holding and am trying to understand how I work out profits for CGT.

I will round the numbers to simplify things.

If I paid a total of 1000 gbp for 20 coins and sold 25% ( 5 coins) of my holding when it was worth 4000 gbp.
I assume I need to deduct 25% of the total cost of buying.

So I sell 5 coins worth 1000 gbp.
Cash 1000 gbp and deduct 250 gbp (25% of my total purchase cost).

Is that correct?

eskbanker

startrim said:

If I paid a total of 1000 gbp for 20 coins and sold 25% ( 5 coins) of my holding when it was worth 4000 gbp.
I assume I need to deduct 25% of the total cost of buying.

So I sell 5 coins worth 1000 gbp.
Cash 1000 gbp and deduct 250 gbp (25% of my total purchase cost).

Is that correct?

Effectively, yes - it's generally best to do the calculations on the basis of unit costs, but it all comes out the same:

Acquisition cost was £1000/20 = £50 per unit.

Disposal value is £1000/5 = £200 per unit.

Gain per unit is £200 - £50 = £150.

Total gain is £150 * 5 = £750.

You can also factor in any qualifying transaction costs involved in the purchase and sale.

Jeremy535897

If you have bought one cryptocurrency at various times you pool the purchase to work out the cost attributable to your sale. However, if you bought coins within 30 days after selling some, you match the sale first with purchases in the relevant 30 days, then with the pooled figure of earlier acquisitions.

https://koinly.io/blog/calculating-crypto-taxes-uk-share-pooling/

startrim

Thank-you eskbanker for showing me the calculation method.

Thank-you Jeremy535897 for the link explaining the different rules.