Crypto Staking Tax UK — How Staking Rewards Are Taxed
UK tax rules for crypto staking rewards. How HMRC treats staking income, when to pay Income Tax vs Capital Gains Tax, and reporting staking on your tax return.
Tax information is based on HMRC rules for the 2026/27 tax year. Tax rules can change — always verify current rates at GOV.UK. This is not tax advice. Consider consulting a qualified tax adviser for your personal situation.
Contents
Crypto staking creates taxable events in the UK. Here’s how HMRC treats staking rewards.
How HMRC Views Staking
Key Principle
Event
Tax Treatment
Receiving staking rewards
Income Tax
Selling/swapping staking rewards
Capital Gains Tax
Holding rewards
No additional tax
Why Two Taxes?
Stage
Tax Type
Reason
Receipt
Income Tax
You received value
Later disposal
CGT
Value may have changed
Double taxation?
No
Different events
Income Tax on Staking
When You Receive Rewards
Calculate
Method
GBP value
At moment of receipt
Use exchange rate
Fair market value
Convert immediately
Even if you hold
Tax Rates (2026/27)
Income Band
Tax Rate
£0 - £12,570
0% (Personal Allowance)
£12,571 - £50,270
20% (Basic rate)
£50,271 - £125,140
40% (Higher rate)
Over £125,140
45% (Additional rate)
Example Calculation
Your Situation
Amount
Salary
£35,000
Staking rewards received
£2,000
Total income
£37,000
Tax on staking
£400 (20%)
Record Each Receipt
Keep Track Of
Example
Date received
15 March 2025
Token amount
0.5 ETH
GBP value at receipt
£1,250
This becomes
Your taxable income AND cost basis
Capital Gains Tax on Disposal
When CGT Applies
Action
CGT Event?
Selling staking rewards for GBP
Yes
Swapping for another crypto
Yes
Using to buy goods/services
Yes
Transferring to own wallet
No
Giving to spouse
No (may apply to them)
Calculating Gain
Step
Calculation
Proceeds
Sale price in GBP
Less: Cost basis
GBP value when you received reward
= Gain (or loss)
Taxable amount
Example
Staking Rewards Sold
Amount
Received ETH value
£1,250 (cost basis)
Sold later for
£1,800
Gain
£550
CGT due (if over allowance)
£99-£132 depending on rate
CGT Rates (2026/27)
Rate
When
18%
Basic rate taxpayer
24%
Higher rate taxpayer
24%
Additional rate taxpayer
CGT allowance
£3,000 per year
Crypto gains have been taxed at the same rates as property (18%/24%) since the October 2024 Budget scrapped the old lower 10%/20% rates for non-property assets.