Hard forks, gifts and lost crypto — UK tax treatment
Quick answer: Hard forks may create new tokens with acquisition cost split from the original pool. Gifts to non-spouses are disposals at market value — CGT may apply. Lost or stolen crypto may be a disposal if you can no longer access it — evidence required. Gifts between spouses/civil partners are generally no gain/no loss.
Unusual events — forks, presents, hacks — still have tax rules. This guide covers the scenarios HMRC addresses in the Cryptoassets Manual.
Hard forks and chain splits
When a blockchain splits, you may receive new tokens. HMRC guidance treats acquisition of new tokens as a taxable event in some circumstances — allocate cost between old and new holdings per HMRC manual.
Gifting crypto
Gifting to anyone other than a spouse or civil partner is a disposal at sterling market value. The recipient inherits your cost basis for future CGT.
Lost keys and theft
If access is permanently lost or tokens stolen, you may claim a capital loss or negligible value with evidence — police report, forensic proof. Not automatic.
Frequently asked questions
Is giving crypto to charity taxable?+
Gifts to UK charities may qualify for CGT relief in some cases — see HMRC charitable giving guidance.