HMRC Updates Crypto Tax Guidance for 2025
HMRC has published revised guidance on how cryptocurrency is taxed in the UK, clarifying rules around staking rewards, airdrops, and DeFi lending.
HMRC has released updated guidance on the taxation of cryptoassets for UK individuals and businesses, addressing several areas that had previously been unclear.
Key changes in the new guidance
Staking rewards
Staking income is now explicitly classified as miscellaneous income at the point of receipt, valued at the sterling equivalent on the date received. When you later sell, swap, or spend those tokens, Capital Gains Tax also applies to any increase in value since receipt.
Airdrops
Airdrops received in return for a service or promotional activity are treated as income. Airdrops received without any action on the recipient’s part (for example, a token snapshot airdrop) are not treated as income at receipt but are subject to CGT on disposal.
DeFi lending and liquidity provision
HMRC has confirmed that lending tokens to a DeFi protocol constitutes a disposal for CGT purposes if beneficial ownership transfers. This means depositing tokens into a liquidity pool may trigger a taxable event even if you receive LP tokens in return.
What you need to do
If you have received staking rewards, participated in airdrops, or used DeFi protocols in the tax year, you may have a reporting obligation. HMRC expects this to be declared via Self Assessment.
The annual Capital Gains Tax allowance for individuals is currently £3,000 for the 2024/25 tax year.
Important note
This article is a summary of HMRC guidance only. It is not tax advice. You should consult a qualified tax adviser or accountant who specialises in cryptoassets if you are uncertain about your personal tax position.