# Referral Income

![](/files/ME2feeegnV0uWj50Qqwv)

## Tax treatment

{% hint style="danger" %}
There is no HMRC guidance on the tax treatment of crypto referral income, so you would need to examine the details to determine the tax treatment.
{% endhint %}

### Income Tax

Referral income is most likely taxed as miscellaneous income and will only in exceptional circumstances amount to a [financial trading](/uk-tax-guide-for-individuals/cryptocurrency-tax/investor-or-trader.md#am-i-a-trader) activity. 

Where the referral income does not amount to a trade, the sterling value (at the time of receipt) of any tokens received from referrals will be taxable as miscellaneous income subject to income tax, with any allowable expenses reducing the amount chargeable.  

{% hint style="danger" %}
If the taxpayer is a ‘[financial trader](broken://pages/rKv3NrB5Ib3jsutlfAKt)’ in cryptoassets this income may be treated as trading income rather than miscellaneous income.
{% endhint %}

### Capital Gains Tax

The sterling value of the referral income at the date of receipt is the capital gains tax acquisition cost of the tokens; to be deducted from the proceeds of a later disposal of the tokens (which is subject to capital gains tax).

## Referral Income in [Recap](https://recap.io/)

![](/files/xNgsZLsNuXv6BqxWCd58)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/referral-income.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.