Which Taxes Apply?

Anyone who trades (buys/sells) or mines cryptoassets, or uses cryptoasset derivatives, needs to first consider if they are engaged in financial trading in cryptoassets (ie a business activity), rather than simply assuming they are classed as an investor and taxed under the capital gains tax regime/miscellaneous income regime.

HMRC state: "Only in exceptional circumstances would they expect individuals to buy and sell exchange tokens with such frequency, level of organisation and sophistication that the activities amount to a trade in itself."

Whether or not there is financial trading in cryptoassets is a complex area. We recommend you read our detailed guidance and consult a professional tax advisor to consider your specific circumstances.

Investor or Trader?

Assuming the cryptoasset activity is not treated as a financial trade, here is an overview of the most common tax treatment for different types of crypto activity. Click the activity type for more detailed information.

Disposal/Activity Type	Capital Gains Tax	Income Tax
​💷 Selling Crypto for Fiat​​	✅​​	❌
🔄 Trading Crypto to Crypto	✅​​	❌
🛍️ Purchases using Crypto	✅​​	❌
🎁 Gifts​​	✅​​	❌
💍 Spouse Transfers	❌ (if conditions met)	❌
🎗️ Gifts to Charity, CASCs & Bodies for a National Purpose	❌ (if conditions met)	❌
​🎈 Airdrops​​	❌*​	✅ (Sometimes)
🤝 Staking​​​	✅​​ (if beneficial ownership is transferred)	✅
💸 Transfers​​	❌​​	❌
🍴 Forks​​​	❌^	❌
⛏️ Mining​​​	❌*	✅
👛​​​​​​ Employment income	​​❌*​	✅
🚨 Lost & Stolen Crypto​	Potential to claim capital losses​	❌
🎲 Gambling	​​✅​​	❌
💧 ​​​​​​​​Liquidity Pool Rewards​​	​❌*	✅
💧Liquidity Pool Entry/Exit	​​✅​​ (if beneficial ownership is transferred)	❌
⬆️ Token Upgrades/Swaps​​​	❌^	❌
🔮 Cryptoasset derivatives (CFDs, Futures and Margin Trading)​​​	✅​​​​​​ (Individual discretion)	✅ (Individual discretion​)
💼 Crypto Loan Principal​​	✅​​ (if beneficial ownership is transferred)	​​❌
💼 Providing Collateral	✅​​ (if beneficial ownership is transferred)	❌
🔄 REPOS	​​ (if beneficial ownership is transferred)	❌
💎​​ Lending Rewards​​​	❌*	✅
🪞 Reflections Rewards​​	❌*​	❌
👥 Referral Income​​​	❌*	✅
💳 Cashback	❌*	❌
​​​​​​🎨 NFTs (Non Fungible Tokens)	✅	❌
🎮 NFTs earned playing games​​	❌*​​	✅

* No Capital Gains Tax at the time of acquisition, but it is subject to capital gains tax when the cryptoasset is later disposed.

^ may affect Capital Gains Tax base cost, though.