Lost Keys or a Worthless Token in Ireland: CGT Loss Rules

Updated 17 October 2026 · Information only · Not tax or financial advice

Short answer: Revenue's manual on section 538 TCA 1997 (TDM 19-01-09, last reviewed August 2026) says the entire loss, destruction or extinction of an asset is a CGT disposal, even if no compensation is received, and that this "may give rise to a loss". Where an asset still exists but its value has become negligible, the owner must make a claim and an inspector may allow a loss, computed as if you sold it for the value stated in your claim. The manual does not mention crypto-assets; applying it to lost keys or collapsed tokens is our reading of general rules.

Two different situations

1. Entire loss or extinction (s.538(1)): this is a disposal by operation of law. Whether lost private keys amount to "entire loss, destruction, dissipation or extinction" of the asset is a question of fact that Revenue's pages do not address for crypto.
2. Negligible value (s.538(2)): you claim; the inspector must be satisfied. If allowed, you are treated as having sold and immediately reacquired the asset at the value in your claim, which becomes your new base cost.

What "negligible" means (Revenue)

• The word isn't defined in the CGT Acts; it takes its normal meaning, "not worth considering; insignificant".
• It is not comparative: a dramatic fall isn't enough. Revenue's example (about shares): a fall from €10m to €100,000 isn't negligible because €100,000 isn't an insignificant amount, particularly where the shares can still be sold.
• For shares, a claim is considered only where the inspector is satisfied they are effectively worthless.
• Revenue asks claimants to give full details, supported by documentation, of why the asset became of negligible value.

Timing of the claim

Strictly, the loss is allowable only in the year of claim. In practice, a claim made within twelve months of the end of the year of assessment for which relief is sought will be admitted, provided the asset was of negligible value in that year (TDM 19-01-09, section 9.2). Example (made up): for 2026, a claim by 31 December 2027, expected to be accepted under that practice if the conditions are met.

Made-up example

You bought a token for €2,000 in 2024. In 2026 it is delisted everywhere and untradeable. If the inspector allows a negligible-value claim at €0 (or a nominal value), you'd have a €2,000 loss (before other gains) for the year, usable first against that year's gains and before the €1,270 exemption (losses and the exemption). If you still hold keys and the token trades, Revenue's reasoning on shares suggests a claim is unlikely.

Keep evidence

Revenue expects records for six years (record keeping). Keep the purchase record, evidence of the loss of access or of delisting, and any attempts to recover.

FAQ

Is a hack or theft treated the same way?

Not covered by the pages read.

Can I get relief just because the price fell 99%?

Revenue's manual says value falls aren't enough where the asset remains marketable; the example concerns shares.

What we could not verify

Sources (official)

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