Cryptoassets: staking, mining and airdrops

Rewards you receive from staking, mining and airdrops are usually taxable as income on the day you receive them.

Mining

If you mine cryptoassets, the value of the coins when you receive them is usually taxable income. If mining is your trade, you pay Income Tax and National Insurance through Self Assessment.

Staking

Staking rewards are usually taxable as income at the point they are received. You may also pay Capital Gains Tax when you later dispose of them.

Airdrops

If you receive an airdrop because you hold a cryptoasset, it is usually taxable as income if you did something in return, such as promoting the project. If you received it with no conditions, it may be taxable as a capital gain instead.

There is a £3,000 annual exempt amount for Capital Gains Tax. Income has no equivalent allowance.

What to record

Record the date you received each reward, its value in pounds on that date, and any fees you paid. See records you need to keep.

Reporting

Report income from crypto on your Self Assessment tax return.