Our client is a UK-resident higher-rate taxpayer who has been actively trading in cryptocurrencies through multiple exchanges. In the 2024-25 tax year they made significant gains from trading Bitcoin and Ethereum but also incurred losses from other cryptocurrencies. They also received staking rewards from a DeFi platform and transferred some of their crypto holdings to a cold wallet. They are unsure how to report these transactions and whether any of the losses can be offset against their gains.
How should our client report their cryptocurrency transactions on their tax return for 2024-25? We are not sure if the staking rewards are considered income or capital gains? Can the losses from disposals be offset against the gains from bitcoin and ethereum? Does the transfer to a cold wallet constitute a taxable event?
Query 20 547 – Mayday.
Mayday needs to establish whether or not his...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
