The following describes how deposits and withdrawals are handled at Accointing. The cost basis for taxable disposals is calculated using HMRCs pooling method.
Deposits
Withdrawals
- ICO, OTC, and Swap classifications act similarly to orders. The deposit (acquisition) of the new coins is not taxable, but the withdrawal (coins traded) is taxable.
- Fees that are allocable to a specific crypto asset are included as part of your tax basis within your taxable disposals. These fees represent other fees, such as internal fees that are not directly allocable to a specific crypto asset.
- Adjustments from the use of reconcile function due to variances between imported data and actual balances. Disclosed separately in your tax report.
- “Lost” is treated as non-taxable. The amount is reported separately in your tax report as it may be deductible in limited circumstances; refer to the Tax Guide for deductibility.
- Margin gains, losses, and fees are reported separately in your tax report.
- Unless it’s a gift to your spouse or civil partner. If that’s the case, classify it as “Remove funds”.
- If you maintain beneficial ownership of your assets during the lending period then this is non-taxable.
- The “Mint” classification is similar to orders. The deposit (acquisition) of the NFT is not subject to taxation, but the sale of the NFT may be taxable. It is recommended to review the cost basis of the NFT based on the acquisition costs and adjust it if necessary.
