Allowable capital losses

tribetown

I am just finishing my self assessment.
In the capital gains section there is a capital losses question.

I understand losses can be used from the previous 4 tax years.

I have a £139 loss from selling some cryptocurrency in August 2022 and a cryptocurrency that Coinbase suspended trading on in May 2022. It cannot be sold or traded. I would like to write off the asset and record it as a loss. It cost me £380.

I have the paperwork for the purchases.

I wonder if it is even worth adding these losses to my tax return as it would only save me £42 in tax and may cause me problems if HMRC question it. I do not have any PDF files to send them for these transactions as I have only started using Kionly tax software this year.

Nomunnofun1

The loss that you made in August 2022 - did you declare it?

Did you make any other gains at all in 2022/23?

Did you make any gains in 2023/24 or 2024/25 above the annual exemption?

Losses can be carried forward indefinitely, not just from last four years. 

wmb194

tribetown said:

I am just finishing my self assessment.
In the capital gains section there is a capital losses question.

I understand losses can be used from the previous 4 tax years.

I have a £139 loss from selling some cryptocurrency in August 2022 and a cryptocurrency that Coinbase suspended trading on in May 2022. It cannot be sold or traded. I would like to write off the asset and record it as a loss. It cost me £380.

I have the paperwork for the purchases.

I wonder if it is even worth adding these losses to my tax return as it would only save me £42 in tax and may cause me problems if HMRC question it. I do not have any PDF files to send them for these transactions as I have only started using Kionly tax software this year.

On the suspended crypto, you'd need to make a negligible value claim. This is hard enough with company shares where they're in e.g., administration but I'm not sure what documentation you'd need to provide for a claim relating to crypto.

https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22500#:~:text=As%20with%20other%20types%20of,amount%20stated%20in%20the%20claim.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13120p

https://www.gov.uk/guidance/negligible-value-agreements

tribetown

Nomunnofun1 said:

The loss that you made in August 2022 - did you declare it?

Did you make any other gains at all in 2022/23?

Did you make any gains in 2023/24 or 2024/25 above the annual exemption?

Losses can be carried forward indefinitely, not just from last four years. 

No, I did not declare the loss. I had gains of £1:50 that tax year. Exemption was £12300.

No, I did not make gains above the annual exemption in 2023/2024.

tribetown

wmb194 said:

tribetown said:

I am just finishing my self assessment.
In the capital gains section there is a capital losses question.

I understand losses can be used from the previous 4 tax years.

I have a £139 loss from selling some cryptocurrency in August 2022 and a cryptocurrency that Coinbase suspended trading on in May 2022. It cannot be sold or traded. I would like to write off the asset and record it as a loss. It cost me £380.

I have the paperwork for the purchases.

I wonder if it is even worth adding these losses to my tax return as it would only save me £42 in tax and may cause me problems if HMRC question it. I do not have any PDF files to send them for these transactions as I have only started using Kionly tax software this year.

On the suspended crypto, you'd need to make a negligible value claim. This is hard enough with company shares where they're in e.g., administration but I'm not sure what documentation you'd need to provide for a claim relating to crypto.

https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22500#:~:text=As%20with%20other%20types%20of,amount%20stated%20in%20the%20claim.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13120p

https://www.gov.uk/guidance/negligible-value-agreements

I see, thanks for the information and links. 
I think I won't bother to try and claim those losses.

Nomunnofun1

tribetown said:

Nomunnofun1 said:

The loss that you made in August 2022 - did you declare it?

Did you make any other gains at all in 2022/23?

Did you make any gains in 2023/24 or 2024/25 above the annual exemption?

Losses can be carried forward indefinitely, not just from last four years. 

No, I did not declare the loss. I had gains of £1:50 that tax year. Exemption was £12300.

No, I did not make gains above the annual exemption in 2023/2024.

I’m not sure what that figure is? 

Regardless, losses must be set against gains arising in the same year initially. You wouldn’t have any loss to carry forward.