CryptoTax UK · Guide
UK Staking Tax — Rewards & Disposals
Staking rewards may be subject to Income Tax when you receive them, and then Capital Gains Tax again when you later dispose of them. This page summarises HMRC's typical position. Educational only — not tax advice.
Estimate my crypto tax →Income Tax on receipt
HMRC's general position is that staking rewards received by individuals are usually subject to Income Tax as miscellaneous income at the GBP value on the date of receipt. The rate depends on your total income for the tax year (basic, higher or additional rate).
Capital Gains Tax on disposal
When you later sell or swap the staked tokens, Capital Gains Tax may apply. The cost basis is the GBP value you used as income on the day of receipt — meaning you pay CGT only on the further price change between receipt and disposal.
Liquid staking and DeFi
Liquid staking and DeFi staking arrangements (where you receive a derivative token like stETH) may be treated as a disposal of the original token at the moment you deposit it. HMRC's DeFi guidance is evolving — consider getting specialist advice if you use DeFi staking heavily.
Record keeping
Keep records of every staking reward: the date, the token, the quantity, and the GBP value on the date of receipt. You need both the receipt value (for Income Tax) and the eventual disposal value (for CGT).
Frequently asked questions
Is staking always Income Tax?
Not always. HMRC's guidance distinguishes between activity that amounts to a trade (taxed as trading profit) and miscellaneous income (most individual stakers). The treatment depends on the scale and organisation of your activity.
Does the Personal Savings Allowance apply?
Staking rewards typically do not qualify for the Personal Savings Allowance because they are not interest from a UK bank or building society. Always check current HMRC guidance.
Are staking rewards above £1,000 always taxed?
The £1,000 trading allowance may apply to small-scale miscellaneous income. Above £1,000, the gross amount is typically subject to Income Tax. Below £1,000, you may not need to report it — but specific circumstances vary.
Educational guidance only. CryptoTax UK is not a regulated tax adviser and the information above does not constitute tax, legal or financial advice. Always confirm your specific position with HMRC or a qualified accountant before filing.