Readers’ forum: HMRC windows to enquire into cryptoasset loss overstatement

Our client’s 2020-21 tax return was filed on 19 January 2022. An amendment is required to the 2020-21 tax return for a material overstatement of a capital loss on disposal of a cryptoasset which arose because of a section 104 pool calculation error in 2017-18 (by our predecessor) recently identified that flowed into 2020-21.

Cryptoasset disposals in 2020-21 were included in the ‘Listed shares and securities’ section on page CG2. When amending the cryptoasset disposal computation error we propose to move all cryptoasset disposals to the ‘Other property’ section on page CG1 rather than retaining the amendments within the wrong boxes on page CG2. After 12 months of filing the original 2020-21 return HMRC’s enquiry or compliance check window extends in respect of the amendments and matters affected by the amendments and not for the whole tax return (EM1506 EM1507 and EM1520).

However the...