HMRC is cracking down on crypto in 2025. Here are the biggest red flags that trigger crypto audits — and how to stay safe.
Crypto traders often focus on profits, but losses are just as important. Declaring your losses to HMRC can reduce your tax bill — and even offset future gains. Here’s how to make sure you don’t miss out.
Step 1: Identify Allowable Losses
- Disposals (sales, swaps, spending crypto).
- Assets that became worthless (e.g., rug-pulls).
Step 2: Report to HMRC
Losses must be reported in your tax return. If you’re late, you can still make a claim, but you’ll need evidence.
Step 3: Carry Forward
Losses can be carried forward indefinitely to offset future gains.
Example
£20,000 gains – £8,000 losses = tax only on £12,000.
Conclusion
Don’t waste losses. Reporting them can save you thousands in future years.
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