Lost money in crypto? Here’s how to claim crypto losses, offset future gains, and reduce your tax bill in 2025 across the UK, US, Canada, and more.
Crypto Losses Explained – How to Claim and Carry Forward Losses in 2025
Meta description: Lost money in crypto? Here’s how to claim crypto losses, offset future gains, and reduce your tax bill in 2025 across the UK, US, Canada, and more.
💡 Introduction
If you’ve lost money in crypto, you might feel like it’s a dead end. But here’s the truth: crypto losses can save you thousands in tax — if you report them correctly.
Tax authorities around the world (HMRC, IRS, CRA, ATO) all allow you to claim losses and carry them forward to offset future gains.
👉 This is where TaxAnon clients often save far more than our £99–£500 service fee.
✅ What Counts as an “Allowable Loss”?
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Disposals at a loss (selling crypto for less than you paid).
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Swaps (e.g., BTC → ETH) where market value is lower.
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NFT sales where cost > proceeds.
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DeFi exits (e.g., pulling liquidity at a loss).
❌ Not allowable:
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Unrealised losses (coins you’re still holding).
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Lost private keys without evidence.
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Scams/hacks (may qualify in some jurisdictions, but very limited).
🇬🇧 UK: HMRC Crypto Loss Rules
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Losses must be reported to HMRC via self-assessment.
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Losses are offset against current year gains first.
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Remaining losses can be carried forward indefinitely.
Example Calculation:
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Trader gains £20,000 on BTC.
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Loses £8,000 on NFTs.
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Taxable = £12,000.
At 20% higher rate CGT → Tax bill = £2,400.
Without losses → Tax bill = £4,000.
👉 Savings: £1,600 — 3–16x more than TaxAnon’s £99–500 fee.
🇺🇸 US: IRS Crypto Loss Rules
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Report losses on Form 8949 & Schedule D.
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Losses offset capital gains dollar-for-dollar.
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If losses > gains, you can deduct up to $3,000/year against income and carry forward the rest indefinitely.
Example Calculation:
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Gains: $50,000.
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Losses: $30,000.
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Net taxable gain = $20,000.
At 20% long-term CGT → Tax bill = $4,000.
Without losses → Tax bill = $10,000.
👉 Savings: $6,000 (~£4,700) vs a £99–500 service fee.
🇨🇦 Canada: CRA Crypto Loss Rules
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Crypto = commodity.
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Only 50% of capital gains/losses are taxable/allowable.
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Losses offset gains in current year, carried back 3 years, or forward indefinitely.
Example Calculation:
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Gains: C$40,000.
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Losses: C$20,000.
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Net taxable gain = (C$20,000 × 50%) = C$10,000.
Tax at 30% = C$3,000.
Without losses = C$6,000.
👉 Savings: C$3,000 (~£1,750) vs a £99–500 fee.
🇦🇺 Australia: ATO Crypto Loss Rules
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Losses can only offset capital gains, not ordinary income.
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Can carry forward indefinitely until used.
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No limit per year.
Example Calculation:
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Gains: AU$60,000.
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Losses: AU$25,000.
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Net = AU$35,000.
At 32.5% CGT → AU$11,375 tax.
Without losses → AU$19,500 tax.
👉 Savings: AU$8,125 (~£4,200).
🌍 Why Traders Miss Out
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Forgetting to register losses with HMRC/IRS → they disappear.
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Assuming “I lost money, so I don’t need to file.” Wrong — you must file to carry forward losses.
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Using DIY software → many don’t correctly reconcile wallets/exchanges, so losses get lost.
📊 Value vs Cost
Here’s the reality:
| Country | Example Loss Claimed | Tax Saved | TaxAnon Fee | ROI |
|---|---|---|---|---|
| UK | £8,000 | £1,600 | £99–500 | 3x–16x |
| US | $30,000 | $6,000 | £99–500 | 12x–50x |
| Canada | C$20,000 | C$3,000 | £99–500 | 4x–18x |
| Australia | AU$25,000 | AU$8,125 | £99–500 | 10x–40x |
🔎 Final Thoughts
If you made a loss in crypto, you could be sitting on a hidden tax refund.
But only if you:
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Register the loss properly.
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Apply it against current/future gains.
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File with clean, reconciled records.
👉 At TaxAnon, we ensure every allowable loss is captured and applied — saving our clients thousands for a fraction of the cost.
🔗 Claim your crypto losses with TaxAnon