In CryptoTaxCalculator, we provide three inventory methods if your country setting is the UK. The HM Revenue and Customs method is available for all paid subscriptions. We also provide the First In First Out and Average Cost inventory methods for users on the Investor and Trader plans.
You can choose your inventory method on the Reports or Settings page.
On the Reports page:
On the Settings page:
HM Revenue and Customs
This includes the Average Cost Basis, Same Day Rule, and Bed and Breakfast Rule. Check our How to calculate your UK crypto tax guide for more details.
Please note that, currently, the Bridge and Swap categories are not supported if you choose HM Revenue and Customs as your inventory method. If you use other inventory methods (e.g., First In First Out or Average Cost), you can use these categories but will not be able to switch back to HM Revenue and Customs.
First In First Out
Date | Trade | Price | Balance | Cost Basis | Proceeds | Gain (Loss) |
1st Jan | Buy 1 BTC | 3,000 | 1 | 3,000 | - | - |
3rd Feb | Buy 1 BTC | 6,000 | 2 | 6,000 | - | - |
4th Jun | Buy 1 BTC | 2,000 | 3 | 2,000 | - |
|
6th Aug | Sell 1 BTC | 4,500 | 2 | 3,000 | 4,500 | 1,500 |
In the above example, we sell our first purchase of BTC on the 1st Jan with a cost basis of $3,000, leading to a gain of $1,500.
Simple Average Cost Basis
Date | Trade | Price | Balance | Cost Basis | Proceeds | Gain (Loss) |
1st Jan | Buy 1 BTC | 3,000 | 1 | 3,000 | - | - |
3rd Feb | Buy 1 BTC | 6,000 | 2 | 6,000 | - | - |
4th Jun | Buy 1 BTC | 2,000 | 3 | 2,000 | - | - |
6th Aug | Sell 1 BTC | 4,500 | 2 | 3,666.67 | 4,500 | 833.33 |
In the above example, we sell a BTC that is assigned the average cost basis of the 3 previous buys. This is calculated by adding the cost basis of each BTC (3,000 + 6,000 + 2,000 = 11,000) and then dividing by the number of BTC held (11,000 ÷ 3) to give a cost basis of $3,666.67. When sold for $4,500, the gain on this BTC is $833.33.