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How is cryptocurrency staking treated for tax purposes in the UK?
How is cryptocurrency staking treated for tax purposes in the UK?

How is staking taxed? Are staking proceeds treated according to income tax or capital gains tax?

Daniel Howitt avatar
Written by Daniel Howitt
Updated over a week ago

Disclaimer: This article is intended as an informative piece. This is not accounting or tax advice. Please speak to a qualified tax professional about your specific circumstances before acting upon any of the information in this article.

Staking is another area of cryptoassets for which it is unclear how the proceeds should be treated for tax purposes. HMRC has not released any guidance on staking or other rewards from different consensus mechanisms. We have sought written guidance from HMRC on this and are awaiting a reply.

Although this is pure speculation, it is possible that staking rewards could be treated as savings income, as the individual is using capital accumulated to gain a return on their investment. This has not been confirmed by anyone at HMRC yet, so we would advise speaking to your accountant about the best way to report any gains or losses from staking.

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