You may be able to claim a loss for the cost of your stolen cryptoassets.
The amount you can claim is the cost that you initially paid to acquire them.
You can only claim the loss if the stolen cryptoassets would have been taxable if you had sold them.
To support a deduction for stolen cryptoassets you'll need to be able to show that:
- your cryptoassets were stolen
- they were trading stock, or if they’d not been stolen, any income from their sale would have been taxable
- you have not recovered any of them.
You can claim the loss in the income year your cryptoassets were stolen.
If your stolen cryptoassets were trading stock, you take them out of your closing stock in the year they were stolen. This means that a deduction is available in that year.
Recovered stolen cryptoassets or compensation
Sometimes you may get your stolen cryptoassets back, or get compensation or insurance. If this happens, and you have previously claimed a loss, you'll need to include the amount recovered as income. The amount you include as income will generally be limited to the amount you claimed as a loss.