Q&A: tax and cryptocurrency disposals

In this week’s Q&A, Croner Taxwise experts consider the tax implications of disposing of cryptocurrency holdings and whether a lost hard drive containing bitcoin can be written off against tax

Two of my personal tax clients have queried the implications of disposing part of their respective cryptocurrency holdings. Client A has accumulated a large wallet of bitcoin from various purchases made over the last six years. Client B has earned some cryptocurrency from mining, and they also stored a part of their cryptocurrency on a hard drive which was lost last year. What are the tax implications for both of my clients, and will Client B get any relief for the lost hard drive?

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