HMRC Crypto Guidance 2026: Latest Updates and What They Mean

HMRC regularly updates its Cryptoassets Manual to reflect new developments in the market. The 2026 round clarifies the tax treatment of DeFi lending, staking, airdrops, NFTs and DAOs — and the data HMRC now receives from exchanges around the world.

Key Updates in 2026

DeFi Lending Clarification

Previously some argued that depositing crypto into a lending pool was a disposal, triggering CGT on paper gains before you’d sold anything. HMRC has now clarified it is not — a welcome change for lenders. Interest is taxable as miscellaneous income when received, at its pound market value at that moment.

Worked example: You deposit 1 ETH (worth £3,000) into a lending pool and earn 0.05 ETH in interest over the year. The 0.05 ETH is miscellaneous income taxable at your Income Tax rate — roughly £150-£200 at basic to higher rates. Withdrawing your original 1 ETH is not a disposal; withdrawing 1.05 ETH makes the extra 0.05 income, with the rest keeping its original cost basis.

Staking Guidance

HMRC treats staking rewards as income at receipt, whether you run your own validator, stake through a pool, or use an exchange. That pound value becomes both the income figure and your cost basis if you later sell. Only where staking is a regular commercial activity does it fall into trading income, which brings deductible expenses into play.

Watch out for: Re-staking. Every reward counts as income at receipt, even if you restake it immediately — a tax bill with no cash to pay it. Keep a fund aside if you stake heavily.

Airdrops

The distinction between “no action” and “claim” airdrops has been tightened:

The zero cost basis is the sting. A no-action airdrop has a cost basis of nil, so selling the tokens later makes the entire proceeds taxable gains. Claiming airdrops creates income tax but gives you a cost basis equal to market value at receipt. Which route is better depends on your allowances, but you must report whichever applies.

NFTs and DAOs

HMRC has confirmed NFTs are taxed separately from fungible cryptoassets, as assets in their own right. Buying, selling or creating NFTs can trigger CGT, Income Tax or both depending on your circumstances, and royalties from NFT sales are income, not capital. This matters because each NFT has its own cost basis, so accurate record keeping is essential.

For DAOs, HMRC’s preliminary guidance treats tokens received for DAO activity as income, and disposal of those tokens triggers CGT in the usual way. Where DAO activity amounts to a trade, trading-income rules apply. Expect this area to be refined further.

Data Sharing Expansion

HMRC has expanded its data collection from crypto exchanges:

The OECD Crypto Asset Reporting Framework (CARF) is the key change. Under CARF, exchanges in dozens of countries automatically share data on UK-resident users — holdings, transactions and proceeds — without HMRC having to ask. The days of “HMRC can’t see my offshore exchange activity” are over. Even self-custodied wallets are caught where they interact with reporting exchanges.

What This Means for You

If the numbers HMRC holds don’t match your Self Assessment, expect a nudge letter at best and an enquiry at worst. Gains over the CGT annual exempt amount (~£3,000) must be reported, and penalties for careless or deliberate error add up to 100% on top of what you owe.

Record Keeping

Retain for each transaction: date, value in pounds, the asset, quantity, type, and any fees. Crypto tax software can assemble this from exchange exports and wallet histories. With CARF data now flowing, your records are your defence if HMRC queries a discrepancy.

Bottom Line

HMRC’s 2026 guidance clarifies DeFi lending (deposits are not disposals), staking (income treatment), and airdrops (action vs no-action distinction). The OECD CARF framework means international exchange data is now shared with HMRC. Report accurately and keep complete records. The era of unreported crypto is ending as data sharing expands globally.

What the 2026 guidance changes for UK crypto holders

The 2026 HMRC crypto guidance introduces several changes that matter for UK taxpayers. Here are the most important:

1. DeFi lending deposits are not disposals — HMRC has now clarified that putting crypto into a lending pool does not trigger CGT, removing a major source of uncertainty for DeFi users.
2. Staking rewards are miscellaneous income — whether you stake solo, through a pool, or via an exchange, the reward is taxed at its pound market value when received.
3. No-action airdrops carry a zero cost basis — you pay no income tax at receipt, but the entire sale proceeds become a capital gain later. Claimed airdrops give you a cost basis equal to market value.
4. NFTs have their own tax treatment — HMRC treats NFTs as separate assets from fungible crypto, each requiring individual cost-basis tracking.
5. International exchange data is now shared with HMRC — the OECD CARF framework means offshore exchange activity is visible to HMRC automatically.

Taking action on the 2026 updates

If you have been deferring crypto tax decisions because the rules felt unclear, the 2026 guidance removes that excuse. The three most urgent actions are straightforward. First, ensure your Self Assessment includes all staking and lending income from the current tax year — HMRC now has the data to cross-check, and discrepancies will trigger automated enquiry letters. Second, review any no-action airdrops in your portfolio: if you received tokens without claiming them, their cost basis is nil, which means selling them produces a larger taxable gain than you might expect. Third, separate your NFT records from your fungible crypto records — each NFT needs its own line in your tracking spreadsheet, and crypto tax software that handles NFTs specifically is worth the investment if you have more than a handful.

For anyone who has not yet filed a Self Assessment covering crypto, the expanded data-sharing under CARF means HMRC is more likely to notice unreported activity than at any point in the past. The penalty for careless errors is up to 100% of the tax owed, rising to 200% for deliberate understatement. Getting your records right now — even retroactively — is significantly cheaper than waiting for HMRC to ask the questions.

Common errors in HMRC crypto reporting