SolvedCRYPTO22255 | Cryptoassets for individuals: Capital Gains Tax: pooling examples: example 5 - interaction of 30 day rule with section 104 pool
From HM Revenue & Customs · Cryptoassets Manual
This example shows how to the 30 day rule and a part disposal of the section 104 pool interact.
Melanie holds 14,000 token E in a section 104 pool. She spent a total of £200,000 acquiring them, which is her pooled allowable cost.
On 30 August 20XX Melanie sells 4,000 token E for £160,000.
Then on 11 September 20XX Melanie buys 500 token E for £17,500.
The 500 new tokens were bought within 30 days of the disposal, so they do not go into the section 104 pool. Instead, Melanie is treated as having disposed of:
the 500 tokens she has just bought
3,500 of the tokens already in the section 104 pool
Melanie will need to work out her gain on the disposal of the 4,000 token E as follows:
| Consideration | £160,000 | |
|---|---|---|
| Less allowable costs – 30 day (11/09 – 500 token E) | (£17,500) | |
| Less allowable costs – S104 (3,500 token E) | £200,000 x (3,500 / 14,000) | (£50,000) |
| Gain | £92,500 |
Melanie still holds a section 104 pool of 10,500 token E. The section 104 pool has allowable costs of £150,000 remaining:
| Date | Quantity of token E | Pooled allowable costs |
|---|---|---|
| Opening balance | 14,000 | £200,000 |
| 30/08/20XX | (3,500) | (£50,000) |
| Closing balance | 10,500 | £150,000 |