Cryptoassets (which might also be referred to as 'tokens' or 'cryptocurrency') are cryptographically secured digital representations of value or contractual rights1.
The tax treatment of transactions in cryptoassets depends on whether the individual is carrying out a trade. See C6.105. This article discusses how to calculate the gain or loss that arises when an individual makes a chargeable disposal of a cryptoasset that is not in the course of a trade. For details of what constitutes a chargeable disposal of cryptoassets, see C6.117. For commentary on situations in which the individual might be subject to income tax on the acquisition of cryptoassets where they are not trading, see C6.115–C6.116.
For the definition of cryptoassets and cryptoasset transactions, see C6.103–C6.104. For a glossary of key terms associated with cryptoassets, see C6.102.
Matching rules for disposals of cryptoassets
Before calculating the gain or loss on the disposal, the first step it to identify which cryptoasset has been subject to disposal. Without doing so it is impossible to determine the correct costs of acquisition, which cryptoassets
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:33