Crypto Staking & DeFi Tax Calculator
Calculate UK tax on staking rewards, DeFi income and liquidity pool returns. HMRC 2026 rates.
Last updated: March 2026
UK Crypto Staking Tax Calculator 2026
Calculate income tax on staking rewards and CGT on disposal — HMRC 2026 rates
Step 1: Staking & DeFi Income
Step 2: Disposal / CGT Calculation (optional)
Crypto Tax Rates & Key Rules 2026
Income Tax on Staking Rewards
| Tax Band | Rate | Income Range |
|---|---|---|
| Personal Allowance | 0% | Up to £12,570 |
| Basic Rate | 20% | £12,571 – £50,270 |
| Higher Rate | 40% | £50,271 – £125,140 |
| Additional Rate | 45% | Over £125,140 |
Capital Gains Tax on Crypto Disposals
| Rate | Applies To |
|---|---|
| 18% | Basic rate taxpayers (from October 2024) |
| 24% | Higher / Additional rate taxpayers (from October 2024) |
| £3,000 | Annual CGT exemption (2026/27) |
Expert Guide: HMRC Crypto Tax Rules 2026
1. HMRC April 2024 Staking Guidance — Income, Not Capital
HMRC's updated Cryptoassets Manual (April 2024) confirmed that staking rewards are generally treated as miscellaneous income under s687 ITTOIA 2005, taxable in the year received at their GBP value on the date received. This overrode earlier ambiguity. The key question HMRC asks: do you receive the reward in return for activity or just by holding? Validator staking (e.g. running an Ethereum node) is more likely to constitute trading. Passive staking via an exchange (Binance, Coinbase) is almost certainly miscellaneous income. Your acquisition cost for the staked tokens becomes the GBP value at which you declared income — this is critical for future CGT calculations.
HMRC's position: staking that involves "an activity" creates income. If you receive tokens as a reward for providing liquidity or participating in governance, the same principle applies. Always record: the date of receipt, the token name, the quantity, and the GBP value using a reputable exchange rate (CoinGecko, CoinMarketCap, or the exchange rate on your platform).
2. Mining vs Staking — Different Tax Treatment
Mining at a commercial scale is treated as a trading activity. Revenue from mining is trading income subject to income tax and Class 4 NIC (9% on profits £12,570–£50,270, 2% above). You can deduct allowable expenses: electricity, hardware capital allowances (Annual Investment Allowance up to £1 million), home office costs. Mining at hobby scale (occasional, small amounts) may be non-trading miscellaneous income — but HMRC may reclassify if the activity is systematic.
Proof-of-Work mining involves computational work — HMRC clearly sees this as an activity. Proof-of-Stake staking is more passive but validator operations (32 ETH+ nodes) show enough activity to potentially be treated as trading. The distinction matters: traders can offset losses against general income (S64 ITA 2007); non-traders can only offset crypto losses against other capital gains.
3. Section 104 Pooling — HMRC's Averaging Rule
HMRC requires each type of cryptocurrency to be held in its own Section 104 pool. When you acquire more tokens, the cost is added to the pool. When you dispose, you use the average pooled cost per token. Example: Buy 1 ETH at £2,000. Buy another 1 ETH at £3,000. Pool cost = £5,000 for 2 ETH (average £2,500 each). Sell 1 ETH at £4,000 → gain = £4,000 − £2,500 = £1,500.
Same-day rule: If you buy and sell the same token on the same day, match those against each other first (before dipping into the pool). Bed-and-breakfast rule (30 days): If you sell and rebuy within 30 days, the reacquisition cost — not the pool average — is used as the disposal cost. This prevents "bed and breakfasting" losses artificially. These rules apply to every swap between cryptocurrencies too — a BTC-to-ETH trade is a disposal of BTC and an acquisition of ETH at the market rate on that date.
4. DeFi: Lending, Liquidity Pools and HMRC's Position
DeFi creates complex tax events. HMRC's CRYPTO22150 guidance notes that where tokens are lent and different tokens are returned, a disposal has occurred (triggering CGT on the outgoing tokens). Where you receive LP tokens in exchange for depositing assets in a liquidity pool, HMRC may treat this as a disposal of the deposited assets. This means entering a Uniswap liquidity pool with ETH/USDC could crystallise a CGT event on the ETH contributed.
Interest / fee income from DeFi: Treated as income at the time received. If you receive cTokens (Compound) or aTokens (Aave) that continuously appreciate, income tax may apply on the appreciation as it accrues — though many practitioners report only on actual withdrawal. Wrapped tokens: Wrapping ETH to WETH is not generally a disposal (same asset, different form). But bridging to a different chain's version may be. The safest approach: use crypto tax software (Koinly, CoinTracker, TaxBit) to track all DeFi interactions.
5. Rug Pulls, Theft, and Bankruptcy — Claiming Relief
Rug pulls / scam tokens: If your token drops to near-zero value (e.g. rug pull), make a negligible value claim via your Self Assessment. This crystallises a capital loss at the date of the claim (or backdated to when the token became worthless). You can then offset this loss against other capital gains in the same year, or carry it forward indefinitely against future crypto gains.
Theft: Stolen crypto is NOT a disposal — you cannot claim a CGT loss for theft. However, if recovery is impossible and you can establish the coins are permanently lost, a negligible value claim becomes possible once that is certain. Exchange insolvency (e.g. FTX): Where an exchange enters formal insolvency and HMRC accepts recovery is negligible, a negligible value claim is available. HMRC issued guidance following FTX's collapse confirming this route. Keep all evidence: exchange communications, wallet screenshots, transaction hashes.
6. Record Keeping — What HMRC Requires
HMRC requires you to keep records for 5 years after the 31 January filing deadline for each tax year. For every crypto transaction you must record: date, transaction type (buy/sell/receive/send), token name, quantity, GBP value at time of transaction, exchange rate source, exchange/wallet involved, and any associated fees. Fees paid in crypto are also disposals — a £50 gas fee in ETH triggers a disposal of that ETH quantity. This creates thousands of micro-transactions for active DeFi users.
HMRC Connect: HMRC's Connect system cross-references data from UK exchanges (Coinbase, Kraken, Binance UK). HMRC has issued information notices requiring exchanges to supply customer data. Even if you haven't reported, HMRC may have data on your transactions. Voluntary disclosure before HMRC contact attracts lower penalties (up to 30% of unpaid tax) vs post-investigation disclosure (up to 100%). Recommended software: Koinly (integrates with 350+ exchanges), CoinTracker, Recap.io (UK-specific, HMRC-compliant reports).
7. The 60-Day Reporting Rule and Self Assessment
The 60-day reporting rule applies primarily to UK residential property disposals — not directly to crypto. However, crypto gains must still be reported via Self Assessment by 31 January following the tax year end. You must report if: (1) Your total crypto gains exceed £3,000 in the year; or (2) Your total proceeds from crypto disposals exceed £12,000 (even if gains are small). Failure to register for Self Assessment when required is a separate offence from failing to pay tax.
Losses: Capital losses must be claimed within 4 years of the end of the tax year in which the loss arose. They carry forward indefinitely but cannot be carried back. You must report losses to HMRC even if you are not otherwise required to file — otherwise you lose the right to use them. HMRC Crypto Manual: Published at gov.uk/government/publications/tax-on-cryptoassets — updated periodically. Always verify current guidance before filing, as HMRC's interpretation of DeFi continues to evolve.
Expert Reviewed — This calculator reflects HMRC's April 2024 updated cryptoassets guidance and the Autumn Budget 2024 CGT rate changes. Last verified: March 2026.
Pro Tips for Accurate Results
- Enter staking rewards at their GBP value on the date you received them — not today's value
- Your acquisition cost for disposed staking tokens equals the income value you already declared
- Include all crypto disposals — including token-to-token swaps and DeFi interactions
- Use dedicated crypto tax software (Koinly, CoinTracker) for complete accuracy across many trades
Common Questions
Do I pay NIC on staking rewards?
Generally no — unless HMRC treats your staking as a trade (e.g. large-scale validator operations). Miscellaneous income does not attract NIC.
Can I offset crypto losses against income?
Capital losses can only offset capital gains, not income. Trading losses (if staking is a trade) can potentially be set against general income.
People Also Ask
Worked Examples: Crypto Staking Tax
Example 1: Basic Rate Taxpayer with ETH Staking
Sarah earns £35,000 salary and received £4,200 ETH staking rewards in 2025/26 (GBP value at receipt). She later sells those ETH for £6,000.
- Staking rewards: £4,200 — taxed as income at 20% = £840
- Cost basis of sold ETH: £4,200 (already taxed at receipt)
- Capital gain: £6,000 − £4,200 = £1,800
- Annual CGT exemption: £1,800 (fully covered by £3,000 exemption)
- CGT due: £0
- Total tax: £840
Example 2: Higher Rate Taxpayer with DeFi & Disposal
James earns £80,000 and received £3,000 DeFi lending income plus sells BTC with £12,000 gain.
- DeFi income: £3,000 at 40% = £1,200 income tax
- BTC gain: £12,000 − £3,000 exemption = £9,000 taxable
- CGT at 24% (higher rate): £9,000 × 24% = £2,160
- Total tax: £3,360
Sources & Methodology
- HMRC – Cryptoassets Manual (updated April 2024)
- HMRC – Capital Gains Tax Rates
- HMRC – Self Assessment Tax Returns
Disclaimer: This calculator provides estimates based on published HMRC rates and guidance. It does not constitute professional tax advice. Crypto tax is complex and evolving — consult a qualified tax adviser or crypto tax specialist for your individual circumstances. Always verify with current HMRC guidance before filing.