SolvedCRYPTO61676 | Decentralised Finance: Lending and staking: Chargeable Gains: Examples: Example 6: borrower satisfies the loan
From HM Revenue & Customs · Cryptoassets Manual
Paula loaned 500 tokens to Glyn for 12 months. The loan agreement included that Paula would receive a 5% rate of return on the loan.
On 20/05/20XX, Glyn transferred 525 tokens to Paula to satisfy the terms of the loan. The tokens had a pooled acquisition cost of £5,250. At that time of the transfer to satisfy the loan, the tokens had a market value of £12 each.
Glyn’s Chargeable Gains (CG) computation will be as follows:
| . | . | £ |
|---|---|---|
| Consideration | 525 x £12 | 6,300 |
| Allowable costs | S104 - £5,250 x 525 / 525 | (5,250) |
| Gain | . | 1,050 |
Glyn’s section 104 pool will be adjusted as follows:
| Date | Quantity of tokens | Allowable costs (£) |
|---|---|---|
| Opening balance | 525 | 5,250 |
| 20/05/20XX | (525) | (5,250) |
| Closing balance | 0 | 0 |