UK Tax Authority Updates Treatment of Crypto Assets to Incorporate Staking

New staking guidance

According to the new guidance, the taxation of staking activity by businesses will depend on whether the activity “amounts to a taxable trade.” This depends on a range of factors, such as the degree of activity, nature of the organisation, the risk involved and the commerciality of the activity.

If staking activity does not amount to trade, the pound sterling value of crypto assets awarded will be taxable as miscellaneous income.

If a business activity does amount to trade, however, profits “must be calculated according to the relevant tax rules.”

Full article:

https://www.coindesk.com/uk-tax-authority-updates-treatment-of-crypto-assets-to-incorporate-staking