# Worthless, stolen or inaccessible crypto: UK loss claims

A price collapse, theft or lost private key does not automatically create an allowable capital loss. A negligible-value claim has conditions and needs evidence. Establish what asset you still own, why it has become of negligible value and the relevant date before claiming.

## Key facts

## A disposal loss is different from a negligible-value claim

An actual disposal normally gives you proceeds and an asset quantity to match against allowable costs. A negligible-value claim is a different route under section 24 of the Taxation of Chargeable Gains Act 1992. A token being worth less than you paid is not enough: distinguish a substantial decline from negligible value.

Source: [HMRC: section 24 and negligible value](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22500)
## Lost private keys do not remove ownership

HMRC explains that losing a private key does not itself dispose of the cryptoasset. It may be possible to make a negligible-value claim if the conditions are met. Document the loss of access, ownership evidence and recovery attempts. Never send a recovery phrase to someone claiming to certify a tax loss.

Source: [HMRC: losing private keys](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22400)
## Theft, fraud and failed exchanges

The theft of tokens is not automatically a disposal by the owner. Insolvency may leave a claim against an exchange or a right to a distribution, so identify exactly what remains recoverable. Save administrator notices and distribution records. Avoid applying a single “lost” label to a stolen token, an irrecoverable debt and an illiquid holding.

Source: [HMRC: theft and fraud](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13155)
## Evidence pack for a loss review

Give an adviser a timeline and the evidence supporting the asset’s value and ownership.

- Acquisition cost and pool calculation for the relevant token.

- Proof you owned the asset at the proposed claim date.

- Liquidity, delisting and redemption evidence.

- Details of recoveries, compensation or creditor rights.

- Copies of correspondence and a written explanation of the claim.
## If value or access returns later

Keep the record of any accepted claim and resulting acquisition cost. A later recovery or sale may have consequences; do not reuse the original cost without checking. Loss claims have deadlines and can affect future years, so keep them separate from a casual portfolio write-off.

[Capital losses and carry-forward rules](https://digital-assets.co.uk/tax/crypto-losses-and-harvesting/)

[Avoid fraudulent recovery services](https://digital-assets.co.uk/scams/recovery-scams/)

## FAQs
### Can I claim a loss just because a coin fell 99%?

A price fall alone is not a disposal. Consider whether you actually disposed of the asset or whether a properly evidenced negligible-value claim meets the conditions.
### Can a stolen token be treated as sold for zero?

Not automatically. HMRC distinguishes theft from a disposal. The rights retained and the facts of the loss require separate assessment.

## Sources

- [HMRC: negligible value](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22500)
- [HMRC: lost keys](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22400)
- [HMRC: theft and fraud](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13155)

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— Digital Assets UK (https://digital-assets.co.uk/tax/crypto-negligible-value-claims/), reviewed 2026-09-30. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22500