Am I in trouble? Etoro huge gain and huge loss

On October 2017 I invested $22000 in Etoro (crypto currencies).
By December I closed the Crypto positions and my overall equities increased to $96000.

Assuming a) you were a UK taxpayer at the time b) these transactions aren't classed as gambling by HMRC, this would have generated a taxable gain.

You will need to work out what the GBP equivalents of your investment and proceeds were at the time of those transactions to calculate the gain.

You had an £11,300 capital gains allowance in 2017/18 so you can deduct this and any allowable losses (this does not include losses in tax years after 2017/18) from the gain. The rest is taxable at 10% if it is within the basic rate tax bracket, or 20% if higher.

There will also be penalties to pay to HMRC as the deadline for filing your 17/18 tax return and paying the tax was 31 January 2019.

Here is my BIG question:
I didn't open or close any positions since January 2018 until now.
I did not withdraw any money from Etoro - not even once.
My overall equity now is worth less than 13000 US dollars.

Doesn't matter if you haven't actually sold your positions and realised any losses.

Even if you do, you can't carry back losses against capital gains in previous tax years. You can however carry forward losses indefinitely. HMRC must be notified of the loss within 4 years of the end of the tax year in which you made them. Realistically speaking, you aren't going to make an $83,000 gain from speculating on cryptocurrency again, but many years from now you might sell a property investment or something so it's worth not forgetting about.

On the positive side, you should still have some money left over from the $13,000 once you pay the CGT bill and penalties. Plenty of people speculating on cryptocurrencies via Cypriot brokers lose all their money or worse.

LobsterMemory wrote: »

This HMRC policy paper suggests that assumption b) above is likely to be valid

https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals

Based on the information the OP provided it certainly looks that way. But eToro exists on a fringe where some of these bucket shops offer actual assets and others offer spread bets. (Spread betting means I place a bet that Bitcoin will go up in the next week but no actual Bitcoin is ever held.) The latter is classed as gambling and winnings are not taxable. So it seemed worth caveating.