Guides · Last reviewed 2 November 2026 · 6-minute read

How are crypto staking rewards taxed in the UK?

In most cases, staking rewards are taxed at two separate moments. When a reward lands, its pound value is income. When you later sell, swap, spend or give away those tokens, any rise in value since you received them can be a gain for Capital Gains Tax.

What HMRC says

Staking means locking up tokens to help run a blockchain, in return for new tokens. HMRC sets out its view in its Cryptoassets Manual at CRYPTO21200.

Is it a trade? HMRC says this depends on how active, organised, risky and commercial the staking is. Staking from a personal holding is usually not a trade, but it is a judgement on the facts.
If it is not a trade, the sterling value of the tokens when you receive them is taxed as miscellaneous income. HMRC says appropriate expenses can reduce the amount taxed.
When you dispose of them later, Capital Gains Tax may apply. A disposal is any sale, swap, spend or gift. HMRC's guidance says you work out the gain on any rise in value since you received the tokens, so the value you counted as income becomes their cost.

HMRC's guidance also says crypto income counts towards the £1,000 allowance that covers trading and miscellaneous income together. If your total is between £1,000 and £2,500, it says to contact HMRC; above £2,500, you need to register for Self Assessment.

Tokens you keep join your other tokens of the same kind in one pool with an average cost, the section 104 pool. Tokens disposed of on the same day, or bought back within 30 days, follow the same-day and 30-day rules first.

Is anything changing?

Not for ordinary staking rewards, on what has been published so far. In July 2026 the government published draft rules for crypto loans and liquidity pools, treating putting tokens in and taking them out as "no gain, no loss" from 6 April 2027. Staking is not one of the arrangements those summaries name, and the draft is not yet law. Until anything changes, CRYPTO21200 is HMRC's published position.

Where HMRC's staking guidance is silent

HMRC's staking page is short, and some common situations aren't covered directly. We say so plainly rather than guess:

Staking through an exchange, where the exchange runs the staking for you. The staking page doesn't treat this separately from staking your own tokens.
Liquid staking tokens, where you receive a token that stands for your staked coins. The staking page doesn't say whether swapping into one is a disposal. HMRC's separate guidance on DeFi lending and staking turns on whether you keep beneficial ownership of your tokens, so the terms of the arrangement matter. This is a point to agree with whoever signs off your return.
Which value to use. HMRC asks for the sterling value when you receive a reward but doesn't name a price source. Use one reasonable source and apply it the same way throughout.
Rewards you can't yet move, for example during an unbonding period. The staking page doesn't say whether you receive a reward when it is credited or when you can withdraw it.

Why it goes wrong

Rewards are left out. Exchange reports often list rewards separately from trades, and they get missed.
Rewards are counted twice. Some reports show them both as income and as purchases at zero cost. That inflates your income, then inflates the later gain.
Tiny, frequent rewards. Some networks pay every few days. A year can mean thousands of small entries, each needing a sterling value.
Restaking. Rewards added straight back into your stake are still income when received, even though no cash moved.
Moving staked tokens between wallets can show up as a sale. See our guide on transfers between your own wallets.

What to do

List every place you staked during the tax year: exchanges, wallets and validators.
Download the full reward history from each, not just the summary.
Give each reward a sterling value at the date and time you received it, using one consistent price source.
Add them up for the tax year. Note any expenses directly linked to earning the rewards, and keep the evidence.
Check the total against the £1,000 allowance and the reporting thresholds above.
Make sure each reward appears once in your capital gains records, with its income value as its cost, and not again as a zero-cost purchase.
Report the income on your Self Assessment return as other income (HMRC's return notes, or your accountant, will confirm the exact section), and any gains from later disposals on the capital gains pages, SA108.
Keep your records. HMRC says these should include the type of token, date received, number received and held, sterling value, bank statements and any disposals.

Special cases

Staking as a business. If your activity amounts to a trade, the rewards are trading income instead. That is a judgement for you or your accountant; we can prepare the figures either way.
Earlier years. If you staked in past years and didn't report it, our guide to HMRC crypto letters explains how HMRC raises this and what happens next.
Losses on tokens you received. If staked tokens later fell in value, a capital loss may be available. See crypto losses and the four-year time limit.

Prefer to hand it over?

A few rewards from one exchange are manageable. A year of daily rewards across several networks, with restaking and moves between wallets, can take days, and one double-counted reward changes both your income and your gains.

We can do the whole reconciliation for you: collect the reward histories, value each reward in sterling, match them into your capital gains records, and list every figure with the HMRC rule behind it. You, your own accountant or one of our partner accountants then handles advice and filing.

Sources

Want it done properly?

Start with a free check, or see how we handle this in crypto tax returns. Already have a report from tax software? A £99 Report Review checks it for problems like this.

Book a free check

General information, not tax advice. Your own situation may differ; if you are unsure, speak to an accountant.