# "Lost" £400,000 bitcoin to Fake Elon Musk scam - and then CGT....



## Mrs Vimes (16 Mar 2021)

I saw this story on BBC this morning and it got me thinking - I assume if the same thing happened here a person would also be caught for CGT? He did "dispose" of the bitcoin at a given value.

I feel some sympathy for the man, but as they say, if it sounds too good to be true..... He had at least cashed out his actual money long ago so not in a worse position than he would have been if it had never happened, unless he has a CGT liability.

I remember a time (but vague on details, would have been around 2005) when a lot of people who had stock options mature after 7 (?) years were liable to income tax on the original option price after the 7 years, but the stock price had tanked in the meantime so the vesting didn't even cover their tax bill. I remember Revenue coming to an arrangement with some of them.

Anyway, be careful of investments!


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## jhegarty (16 Mar 2021)

Could he write off the £400k loss as a bad investment ?


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## torblednam (17 Mar 2021)

Mrs Vimes said:


> I saw this story on BBC this morning and it got me thinking - I assume if the same thing happened here a person would also be caught for CGT? He did "dispose" of the bitcoin at a given value.
> 
> I feel some sympathy for the man, but as they say, if it sounds too good to be true..... He had at least cashed out his actual money long ago so not in a worse position than he would have been if it had never happened, unless he has a CGT liability.
> 
> ...


In this situation, he hasn't realised a gain. The consideration he believed he was to receive hasn't been paid, so section 563 TCA 1997 would apply (if this happened in Ireland). 

The relevant but being "Where any part of the consideration... is shown to the satisfaction of the inspector to be irrecoverable, such adjustment, whether by means of discharge or repayment of tax or otherwise, shall be made as the case may require".


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## Mrs Vimes (25 Mar 2021)

Thanks for that torblednam, I had hoped there would be provisions like that.


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