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UK Crypto Cost Basis: Same Day, 30 Day and Section 104
Learn how UK crypto cost basis matching works through same-day, 30-day and Section 104 pooling, including mined tokens, fees and GBP records.
UK crypto gains are not normally calculated by choosing FIFO or LIFO. Statutory matching rules identify which acquisition cost is used for each disposal.
TL;DR
- UK crypto gains are not normally calculated by choosing FIFO or LIFO. Statutory matching rules identify which acquisition cost is used for each disposal.
- Keep contemporaneous GBP valuations and evidence for income, acquisitions and disposals.
- Use current HMRC guidance and obtain qualified advice for the facts of your operation.
The matching order
Disposals are generally matched first with acquisitions of the same asset on the same day, then qualifying acquisitions in the following 30 days, and then the Section 104 pool. Each token type has its own pool.
Section 104 pooling
The pool tracks the total quantity and pooled allowable cost of a particular asset. Part disposals use a proportion of that pooled cost. Maintain the pool continuously and process events in the correct order.
How mined tokens enter the records
Where a mining reward has been taxed as income, the sterling value brought into income is relevant when establishing the later acquisition cost. Trading stock follows business rules. Keep the reward valuation linked to the token quantity and wallet.
Fees and token swaps
A token-to-token exchange is normally a disposal and acquisition. Some transaction and exchange fees can be allowable. Where one fee relates to both sides, HMRC accepts a just and reasonable apportionment and warns that a cost can be deducted only once.
Software needs checking
Tax software can automate matching but cannot determine beneficial ownership, correct missing data or decide whether a DeFi transfer is a disposal. Reconcile quantities and inspect exceptions before relying on the output.
Useful next steps
Authoritative references
Use current official guidance because tax rules and HMRC guidance can change.
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