📝 Description
This guide describes how Waltio treats withdrawal labels for the United Kingdom reporting. UK crypto disposals generally use the Section 104 pool. Seek professional advice for circumstances outside standard reporting.
📂 Withdrawal labels
Label | Impact calculation / acquisition price | Taxable? | Crypto holdings impact | Example |
CFD Loss | Specific regime. Record the CFD amount separately. | ✅ Specific regime; ❌ not taxable in Waltio | ⏬ Decrease when paid in crypto | Buy USD 10,000 for EUR 10,000. CFD loss: EUR 8,000. AP: EUR 10,000. Remove the CFD for EUR 8,000. Deductible base: EUR 8,000. Consult a lawyer. |
Payment | Initial price of the crypto used. Remove it from the Section 104 pool at pooled cost. | ✅ Capital gains | ⏬ Decrease | Pay a subscription with BTC. It is a disposal at its GBP market value. |
Fees | Add the fee to cost basis on purchase. Deduct it from proceeds on sale. | ❌ | ⏬ Decrease | Buy 1 BTC for EUR 10,000 plus EUR 2,000 fee. Sell for EUR 30,000 less EUR 3,000 fee. Gain: EUR 27,000 − EUR 12,000 = EUR 15,000. |
Staking | AP: initial purchase price of the crypto staked. | ❌ | ⏸ No change | Buy 1 ETH for EUR 1,000. Stake it when ETH is EUR 3,000. AP remains EUR 1,000. |
Transfer between accounts | AP: initial purchase price of the transferred crypto. No tax impact. | ❌ | ⏸ No change | Buy 1 ETH on Binance for EUR 1,000. Transfer it to MetaMask when ETH is EUR 3,000. AP remains EUR 1,000. |
Donation | Disposal at market value. | ✅ Capital gains, unless to a spouse | ⏬ Decrease | Buy 1 BTC for EUR 20,000. Give 1 BTC. |
Hack and loss | Remove the asset from the pool. | ❌ | ⏬ Decrease | Buy 1 BTC for EUR 20,000. It is hacked. Deductible base: EUR 20,000. Keep solid evidence. |
Add liquidity (LP) | Disposal of tokens used. | ✅ Capital gains | ⏬ Decrease | Buy 1 ETH for EUR 1,000. Deposit it in an LP when worth EUR 1,500. AP: EUR 1,000. Taxable base: EUR 500. |
Collateralization | AP: initial purchase price of the collateral. No tax impact. | ❌ | ⏸ No change | Buy 10 ETH for EUR 8,000. Use them as collateral for 0.5 BTC. AP: EUR 8,000. |
Other withdrawal | Initial cost remains unchanged. Treated as a disposal. | ✅ Capital gains | ⏬ Decrease | Avoid this label where possible. |
ICO participation | Initial cost of the token used remains unchanged. | ✅ Capital gains | ⏬ Decrease | Buy 1 ETH for EUR 1,000. Deposit it into an ICO when worth EUR 3,000. AP: EUR 1,000. Taxable base: EUR 2,000. |
Other loss | Remove the asset from the pool. | ❌ | ⏬ Decrease | Buy 1 ETH for EUR 1,000. Lose it when worth EUR 3,000. Remove ETH for EUR 1,000. Keep solid evidence. |
NFT purchase | Initial cost of crypto used remains unchanged. | ✅ Capital gains | ⏬ Decrease | Buy 10 ETH for EUR 4,000. Buy an NFT with 10 ETH worth EUR 10,000. AP: EUR 4,000. Taxable base: EUR 6,000. |
Swap | New cost of swapped crypto is its market value. | ✅ Capital gains | ⏬ Decrease | Sell 1 BTC for 10 ETH at EUR 1,000 each. AP of 10 ETH: EUR 10,000. |
Collateral liquidation (loan) | Initial cost remains unchanged. | ✅ Capital gains | ⏬ Decrease | Buy 10 ETH for EUR 8,000. Use them as collateral. Liquidate them when worth EUR 3,000. AP: EUR 8,000. |
💡Recommendations
Losses, hacks and CFD transactions need supporting evidence.
Get professional advice for specific tax regimes.
Label or match every transaction. UK capital-gains calculations apply same-day matching, the 30-day rule, and the Section 104 pool. An unlabelled deposit or withdrawal can therefore alter the acquisition price and capital-gains calculation.
Read the UK calculation and pooling rules.