# Which Taxes Apply? Anyone who trades (buys/sells) or mines cryptoassets, or uses [cryptoasset derivatives](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/cryptoasset-derivatives-cfds-futures-and-margin-trading), needs to first consider if they are engaged in[ financial trading in cryptoassets ](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/investor-or-trader)(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. {% hint style="info" %} 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." {% endhint %} 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](https://www.wrightvigar.co.uk/services/crypto/) to consider your specific circumstances. {% content-ref url="investor-or-trader" %} [investor-or-trader](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/investor-or-trader) {% endcontent-ref %} Assuming the cryptoasset activity is not treated as a [financial trade](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/investor-or-trader), 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 | | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | | ​:pound: [Selling Crypto for Fiat​​](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/selling-crypto-for-fiat) | ✅​​ | ❌ | | 🔄 [Trading Crypto to Crypto](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/trading-crypto-to-crypto) | ✅​​ | ❌ | | :shopping\_bags: [Purchases using Crypto](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/purchases-using-crypto) | ✅​​ | ❌ | | :gift: [Gifts](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/gifts)​​ | ✅​​ | ❌ | | :ring: [Spouse Transfers](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/spouse-transfers) | ❌ (if conditions met) | ❌ | | :reminder\_ribbon: [Gifts to Charity, CASCs & Bodies for a National Purpose](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/gifts-to-charity-cascs-and-bodies-for-a-national-purpose) | ❌ (if conditions met) | ❌ | | ​🎈 [Airdrops](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/airdrops)​​ | ❌\*​ | ✅ (Sometimes) | | 🤝 [Staking](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/staking)​​​ | ✅​​ (if [beneficial ownership](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred) is transferred) | ✅ | | :money\_with\_wings: [Transfers](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/transfers)​​ | ❌​​ | ❌ | | :fork\_and\_knife: [Forks](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/forks)​​​ | ❌^ | ❌ | | :pick: [Mining](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/mining)​​​ | ❌\* | ✅ | | :purse:​​​​​​ [Employment income](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/employment-income) | ​​❌\*​ | ✅ | | :rotating\_light: [Lost & Stolen Crypto](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/lost-and-stolen-crypto)​ | Potential to claim capital losses​ | ❌ | | :game\_die: [Gambling](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/gambling) | ​​✅​​ | ❌ | | :droplet: ​​​​​​​​[Liquidity Pool Rewards](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/liquidity-pools#liquidity-pool-rewards)​​ | ​❌\* | ✅ | | :droplet:[Liquidity Pool Entry/Exit](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/liquidity-pools#liquidity-pools-entry-and-exit) | ​​✅​​ (if [beneficial ownership](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred) is transferred) | ❌ | | :arrow\_up: [Token Upgrades/Swaps](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/token-upgrades-swaps)​​​ | ❌^ | ❌ | | :crystal\_ball: [Cryptoasset derivatives (CFDs, Futures and Margin Trading)](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/cryptoasset-derivatives-cfds-futures-and-margin-trading)​​​ | ✅​​​​​​ (Individual discretion) | ✅ (Individual discretion​) | | :briefcase: [Crypto Loan Principal​​](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/crypto-loans) | ✅​​ (if [beneficial ownership](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred) is transferred) | ​​❌ | | :briefcase: [Providing Collateral](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/crypto-loans) | ✅​​ (if [beneficial ownership](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred) is transferred) | ❌ | | :arrows\_counterclockwise: [REPOS](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/repos) | ​​ (if [beneficial ownership](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred) is transferred) | ❌ | | :gem:[​​ Lending Rewards​​​](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/crypto-loans#lending-rewards) | ❌\* | ✅ | | :mirror: [Reflections Rewards](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/reflections-rewards)​​ | ❌\*​ | ❌ | | :busts\_in\_silhouette: [Referral Income](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/referral-income)​​​ | ❌\* | ✅ | | :credit\_card: [Cashback](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/cashback) | ❌\* | ❌ | | ​​​​​​:art: [NFTs (Non Fungible Tokens)](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/nfts-non-fungible-tokens) | ✅ | ❌ | | :video\_game: [NFTs earned playing games](https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/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.