CryptoTax UK · Guide
Negligible Value Claim for Crypto UK — HMRC Guide
If you hold crypto that has become effectively worthless — due to a project collapse, exchange failure or rug pull — you may be able to claim a capital loss via a negligible value claim. This guide explains how. Educational only — not tax advice.
Calculate my net crypto gains →What is a negligible value claim?
A negligible value claim allows you to treat an asset as though it has been disposed of and reacquired at its current (negligible) value, crystallising a capital loss without actually selling. This loss can then be offset against capital gains in the same year or carried forward to future years.
Which crypto qualifies?
Crypto qualifies for a negligible value claim if its value has become negligible — typically meaning near zero. This might apply to tokens from an abandoned project, assets on a collapsed exchange, or tokens subject to a rug pull.
How to make the claim
Report the negligible value claim on your Self Assessment return via the SA108 capital gains supplement. Keep evidence: screenshots of token prices, announcements from the project or exchange, and any other contemporaneous evidence of the collapse.
Frequently asked questions
Can I claim a loss on a rug pull?
Potentially — if your tokens are still in your wallet but worthless, a negligible value claim may apply. Specialist advice is recommended.
Can I backdate a negligible value claim?
Yes — HMRC allows you to elect a date of negligible value up to 2 years before the tax year in which the claim is made, if the asset was worthless at that earlier date.
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Calculate my net crypto gains →Educational guidance only. CryptoTax UK is not a regulated tax adviser and the information above does not constitute tax, legal or financial advice. Always confirm your specific position with HMRC or a qualified accountant before filing.