# Staking, mining and airdrops — UK Income Tax explained

Mining rewards, staking income, airdrops received for a service, and salary paid in crypto are generally subject to Income Tax on their pound value when received. You add that value to your pool cost when you later sell.

## Key facts
- Income Tax uses your marginal rate (20%, 40% or 45%).
- The taxable amount is the sterling value when received.
- Subsequent sale may trigger CGT on any gain after that.
- Casual airdrops with no service may still be taxable — check facts.
- Self-employed miners may need to register for Self Assessment.

## Staking rewards

When you stake crypto and receive new tokens as a reward, HMRC generally treats the reward as income at the sterling market value when you receive it. That value becomes part of your acquisition cost for the pool when you later dispose.
## Mining

Mining income is typically taxable as trading or miscellaneous income depending on whether your activity amounts to a trade. Electricity and equipment costs may be deductible if you are trading. Most hobby miners still need to declare income.
## Airdrops

Airdrops received in return for a service (such as promoting a project) are usually income. Airdrops received without doing anything may still be taxable depending on the circumstances — see HMRC guidance on receiving cryptoassets. Minor miscellaneous income may fall within the £1,000 trading allowance.
## The £1,000 trading allowance

If you are not carrying on a trade, mining, staking and lending income may count as miscellaneous income. The first £1,000 of trading and miscellaneous income per tax year may be covered by the trading allowance — but you must still keep records and report if you exceed it or must file for other reasons.

## FAQs
### Do I pay tax twice on staking rewards?

You pay Income Tax when received. If you later sell at a profit above that value, CGT may apply on the additional gain.

## Sources

- [HMRC — Check if you need to pay tax when you receive cryptoassets](https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-receive-cryptoassets)

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— Digital Assets UK (https://digital-assets.co.uk/tax/staking-mining-airdrops-tax/), reviewed 2026-06-23. Source: https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-receive-cryptoassets