Practical, no-nonsense guides to how HMRC taxes DeFi activity. Written for people who actually use these protocols.
Staking rewards are income. Swaps are capital gains. Aave deposits are neither. The classification determines your tax rate, your tax form, and your cost basis — and most tools get it wrong.
Sold, swapped, staked, or earned crypto? You probably need to report it — even if you lost money. Here's exactly when HMRC requires a Self Assessment return, what triggers reporting, and the thresholds that catch most DeFi users.
Buying an NFT with crypto is a disposal of the crypto you spent. Selling one is a disposal of the NFT. Minting, royalties, airdrops — every step has tax implications. Here's how HMRC treats NFT transactions and what most tax tools miss.
Every token-to-token swap is a disposal for CGT — even without touching fiat. How HMRC taxes DEX swaps, aggregator routing, stablecoin swaps, and what most tools get wrong.
Most Aave interactions are non-taxable — but tools that misclassify deposits as disposals create massive phantom gains. How HMRC treats supply, withdraw, borrow, repay, aToken interest, and liquidations.
Curve gauge rewards are income, not capital gains — and most tools get this wrong. How HMRC taxes CRV claims, stablecoin swaps, LP deposits, veCRV locking, and admin fees.
Is wrapping ETH to WETH taxable? What about stETH to wstETH, or swapping for rETH? The answer depends on whether it's a representation change or a token swap. Here's exactly how HMRC treats each one.
HMRC applies three matching rules in strict order before your Section 104 pool: same-day, 30-day B&B, then pooled average. Most crypto tax tools skip or botch these rules. Here's how they actually work, with worked examples.
From 1 January 2026, ~50 UK exchanges report your full transaction history to HMRC under CARF. First data exchange: May 2027. What they report, why DeFi is the gap, and what to do now.
Capital losses on crypto reduce your CGT bill — but only if you report them. How loss carry-forward works, negligible value claims for rug pulls, the B&B trap, and exactly what goes on SA108.
HMRC requires Section 104 pooling for crypto — not FIFO or LIFO. Learn the three matching rules (same-day, 30-day B&B, S104 pool), see a worked example, and understand how DeFi income enters your cost basis.
Bridging crypto between chains is NOT a taxable disposal under HMRC rules — but most tax tools get this wrong, creating phantom gains. Here's exactly how bridges should be classified and why your cost basis carries over.
Split-year CGT rates, new SA108 crypto boxes, £3,000 exempt amount, HMRC matching rules, DeFi income, and CARF. Everything you need to file your 2024/25 crypto tax return correctly.
Staking rewards are miscellaneous income, not capital gains — but the rules differ for Lido rebases, Rocket Pool rETH, Aave lending, and exchange staking. Here's exactly what goes where on your tax return.
HMRC sent over 100,000 CGT warning letters to crypto holders since 2020, and CARF now means your exchange reports directly to them. Here's what's changed and what to do about it.
Adding liquidity on Uniswap isn't just "parking tokens." HMRC treats it as multiple taxable events. Here's exactly what happens — and what most tax tools get wrong.
Paste any transaction hash and see how ChainTax classifies it — free, no account needed. Or scan your full wallet for an HMRC-ready tax report.