DeFi Yield Tax Calculator

HMRC treats staking rewards as miscellaneous income, taxed at income tax rates (20%/40%/45%). The GBP value at receipt is the taxable amount and becomes the cost basis for future disposal.

Yield farming returns are generally treated as income tax by HMRC, not capital gains. When you sell the farmed tokens, any additional gain above receipt value is CGT.

Adding crypto to a liquidity pool is likely a disposal of the original tokens (CGT event). Receiving LP tokens back is treated as acquiring new assets. Removing liquidity is another disposal.

For DeFi staking rewards, the cost basis is the GBP market value at the time of receipt. This is also what you declare as income. Future disposal proceeds minus this cost = capital gain.

Yes. HMRC taxes crypto income and gains based on GBP equivalent values at time of receipt/disposal, regardless of whether you've converted to fiat.

Wrapping crypto (e.g., ETH to WETH) may be treated as a disposal — this is unclear. HMRC has not issued definitive guidance; many practitioners treat it as a tax-free transfer.

Keep records of all transactions: date, type, token, amount, GBP value at time. DeFi transactions often require blockchain explorer records.

DeFi disposal losses can offset other capital gains. Losses on DeFi tokens held as capital assets can be carried forward against future gains.

NFT income from DeFi (liquidity rewards in NFT form) is taxed as income at receipt value. Subsequent sale above that value is subject to CGT.

HMRC published DeFi-specific guidance in 2023 stating returns from lending/staking are generally income. They are reviewing lending arrangements specifically.

Airdrops for services (like providing liquidity) are taxed as income. Airdrops with no service requirement may be non-taxable, with cost basis set to zero.

DeFi tax is complex with evolving HMRC guidance. For significant DeFi activity, a specialist accountant with crypto experience is recommended.