# Hard forks, gifts and lost crypto — UK tax treatment

A hard fork normally requires the original allowable cost to be apportioned between the resulting token pools. Ordinary gifts generally use market value; qualifying spouse or civil-partner transfers have different rules. Theft or loss of a private key is not itself a disposal.

## Key facts
- Forked tokens have a separate pool with an apportioned acquisition cost.
- Birthday gifts of crypto to friends can trigger CGT.
- Theft alone does not create a capital loss.
- Negligible value claims possible for worthless tokens.

## Hard forks and chain splits

Following a hard fork, put the new tokens in their own Section 104 pool. Split the original allowable costs between the old and new pools on a just and reasonable basis. Retain the valuation and apportionment method; exchange recognition of the new token can affect the facts.
## Gifting crypto

For an ordinary gift, the donor generally disposes at market value and the recipient generally acquires at that value. Qualifying spouse or civil-partner transfers use no-gain/no-loss treatment instead. Gifts to charities and other reliefs have separate conditions; do not apply one cost-basis rule to every gift.
## Lost keys and theft

Neither losing a private key nor theft is itself a disposal. If there is no prospect of recovering a key or accessing the tokens, HMRC may accept a negligible-value claim. Theft alone does not support a CGT loss; a police report does not change that tax treatment.

The [negligible-value guide](https://digital-assets.co.uk/tax/crypto-negligible-value-claims/) separates lost access, theft and claims involving worthless tokens.

## FAQs
### Is giving crypto to charity taxable?

Gifts to UK charities may qualify for CGT relief in some cases — see HMRC charitable giving guidance.

## Sources

- [HMRC — Theft and fraud](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22450)
- [HMRC — Lost private keys](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22400)
- [HMRC — Blockchain forks](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22300)
- [HMRC — Gifts and Capital Gains Tax](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12920)
- [HMRC — Cryptoassets Manual](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual)

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— Digital Assets UK (https://digital-assets.co.uk/tax/hard-forks-gifts-lost-crypto/), reviewed 2026-09-30. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22450