The report follows UK tax laws, some of the factors included are:
Rule 1: Same Day Rule (an exception to pooling)
If you buy and sell gold on the same day, all those transactions should be combined into one transaction when you calculate your gains or losses instead of using pooling. If you've sold or traded more than you bought that day, move to see if rule 2 should apply to those excess buys and sells.
Rule 2: Bed and Breakfast Rule (an exception to pooling)
If you sell gold and then buy the same gold within 30 days, the cost basis for the sold gold is based on those later acquisitions. Those acquisitions should be matched in a sequence of the earliest disposals first.
If you've sold more than you bought or bought more than you sold within the last 30 days and there are no other Same Day Rule considerations, the excess buys and sells should be part of Rule 3.
It's important to note that the Same Day Rule should always be applied first if transactions on the same day also fall within the Bed Breakfast Rule 30-day window.
Rule 3: Section 104 Rule Pooling
Use the average cost basis method to calculate an average cost for a given pool of assets. Add up the total amount paid for a pool of assets and divide it by the total amount of coins/tokens in the pool. Then use this cost basis to calculate subsequent gains or losses.
For additional information and specific examples for the three rules described above, please refer to the HMRC guidance and/or consult your tax adviser.