# Staker/Lender/Collateral Provider

The tax position of the person locking away their tokens in a yield generating activity depends on [whether the reward/return is income or capital](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-the-reward-income-or-capital) and it also depends on [whether or not beneficial ownership of the tokens is transferred to another party](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred). 

Our analysis of the tax position for the staker/lender is split into the following scenarios:

<details>

<summary>Where <a href="staker-lender-collateral-provider/income-rewards">Income Rewards</a> are received for locking tokens up</summary>

* [Beneficial ownership transferred](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/consider-the-tax-treatment/staker-lender-collateral-provider/income-rewards/bo-transferred)
* [No beneficial ownership transferred](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/consider-the-tax-treatment/staker-lender-collateral-provider/income-rewards/bo-not-transferred)

</details>

<details>

<summary>Where <a href="staker-lender-collateral-provider/capital-rewards">Capital Rewards</a> are received for locking tokens up</summary>

* [Beneficial ownership transferred](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/consider-the-tax-treatment/staker-lender-collateral-provider/capital-rewards/bo-transferred)
* [No beneficial ownership transferred](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/consider-the-tax-treatment/staker-lender-collateral-provider/capital-rewards/bo-not-transferred)

</details>