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UK Crypto Airdrop Tax: Income and Disposal Rules
Learn when a UK crypto airdrop may be income, how later disposals are taxed and what records ASIC miners and crypto holders should keep for HMRC.
Airdrop treatment depends on why it was received. Rewards linked to services or activity can be income, while a later disposal can still create a gain or loss.
TL;DR
- Airdrop treatment depends on why it was received. Rewards linked to services or activity can be income, while a later disposal can still create a gain or loss.
- Keep contemporaneous GBP valuations and evidence for income, acquisitions and disposals.
- Use current HMRC guidance and obtain qualified advice for the facts of your operation.
Why the airdrop was received
An airdrop received in return for, or in expectation of, a service can be income. A genuinely unsolicited allocation with nothing done in return may not be income on receipt, but the facts and any connected activity matter.
Trading cases
If the recipient carries on a trade and the airdrop is connected with it, the value can be a trading receipt. Business accounts should record the quantity and GBP value consistently.
Later sale or swap
An airdropped token can still be a chargeable asset. Selling, swapping or spending it can create a disposal, even where no Income Tax arose on receipt.
Records
Keep the announcement, eligibility rules, wallet transaction, actions taken, receipt time, token quantity, GBP valuation and disposal evidence. Beware of scam tokens and do not connect wallets merely to obtain records.
Mining-pool promotions
A token or bonus paid by a pool, marketplace or supplier can be connected to mining or commercial activity rather than a passive airdrop. Analyse the agreement and reason for payment.
Useful next steps
Authoritative references
Use current official guidance because tax rules and HMRC guidance can change.
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