So I have a question regarding UK tax and crypto. I’ve only just started dipping my toes in crypto since December. I can say with confidence that I’m at a loss so far but that’s OK I’m in for the long run so no intention of selling.
My question is regarding Defi specifically. HMRC state that staking rewards from defi are to be counted as income (unless the rewards get paid out in one lump sum which then may count as CG).
So say (hypothetically ofc) I earn over £1000 in staking over the year and must declare the income. When I go on to sell those rewards for profit down the line I would also have to pay CG if over £12.5k for that year.
So am I right in thinking that we would potentially be paying double the tax (once for the income and once for future sale)
Apologies if it’s a dumb question and maybe I haven’t understood well. Seems stupid to me having to declare income on something the government doesn’t regard as currency but rather an asset. Until u sell it won’t benefit me in the slightest in the real world.
Thanks in advance.