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2026-01-14

Yield farming or DeFi interest

Earnings from yield farming or lending crypto in DeFi platforms are taxed as income at the time they are received. However, depositing into and withdrawing from a liquidity pool may be treated as a disposal, which is a capital gains event.

  • Example: Earning £500 in interest from a DeFi platform is subject to Income Tax.

Payments for goods or services

Receiving cryptocurrency as payment for goods or services is treated as income at its market value when received. There are instances where the “value” of the work will be taxed instead of the value of the crypto received. Professional advice should be taken if you are unsure.

  • Example: If you're paid 0.2 BTC for freelance work worth £6,000, this amount is subject to Income Tax.

Receiving airdrops

If you actively participate to receive an airdrop (e.g., completing tasks), the tokens are treated as income at their market value upon receipt.

  • Example: Earning £100 in tokens from an airdrop after completing tasks is subject to Income Tax.

Mining rewards

Mining rewards are taxed as income. Those undertaking mining activities to an extent to which they are operating a business will be subject to additional tax obligations.

  • Example: Earning 0.5 BTC through mining worth £10,000 at the time of receipt is subject to Income Tax.

Staking rewards

Cryptocurrency earned through staking is considered income at the market value at the time of receipt.

  • Example: If you earn 0.1 ETH through staking worth £200, this amount is subject to Income Tax.

Providing liquidity

Adding liquidity: If adding assets to a liquidity pool results in a change of ownership or creates a new token (e.g., LP tokens), it may be considered a taxable disposal, with CGT applying to any gains. The answer to this can usually be found within the terms and conditions of the protocol.

Removing liquidity: Removing assets from a liquidity pool may also be a disposal, potentially triggering CGT based on the gain or loss relative to the cost basis.

Liquidity pool rewards are generally treated as taxable income upon receipt, subject to Income Tax.

Selling airdropped tokens

Selling tokens received through an airdrop is a taxable disposal.

Tokens received without any action (eg, unsolicited distributions) are not taxed as income upon receipt. Instead, they are subject to Capital Gains Tax (CGT) when sold, with the cost basis typically being zero or the fair market value at the time of receipt if explicitly stated by HMRC.

Tokens earned through performing tasks (eg, completing activities) are taxed as income at the market value in GBP upon receipt. When sold, the gain or loss is subject to CGT, calculated using the market value at receipt as the cost basis.

  • Example: You perform a series of tasks to qualify for an airdrop. You then sell that airdropped token for £500 and it has a cost basis of £200. The £200 cost basis would have been subject to income tax in the tax year in which it was received and the £300 gain is subject to CGT in the tax year in which the token is sold.

Selling NFTs

Disposing of NFTs is treated similarly to crypto disposals, with gains subject to CGT.

  • Example: If you bought an NFT for £1,000 and sold it for £3,000, the £2,000 profit is taxable.

Gifting cryptocurrency (excluding spouse or civil partner)

Gifting crypto to someone triggers CGT based on the market value at the time of the gift. Gifting to registered charities or your spouse or civil partner does not trigger a taxable event. Here, we have often seen individuals gifting tokens to others but keeping them in their own wallet. If this is the case, it is very important to document the gift. Consider speaking to a tax advisor if you are uncertain of your position.

  • Example: Giving 1 ETH to a friend worth £2,000 incurs CGT on any gains above its cost basis.

Using crypto to purchase goods or services

Spending cryptocurrency on goods or services is considered a disposal.

  • Example: Paying 0.5 BTC for a laptop is a taxable event. If the BTC had a cost basis of £5,000 but was worth £10,000 at the time of the transaction, the £5,000 gain is subject to CGT.

Crypto-to-crypto trades (swaps)

Exchanging one cryptocurrency for another (e.g., BTC for ETH) is treated as a disposal for tax purposes.

  • Example: Swapping BTC worth £5,000 for ETH creates a taxable event, with any profit based on the cost basis of your Bitcoin. The value of the BTC when swapping will be the proceeds and will also become the cost of the ETH that has been obtained.

Selling crypto for GBP

Any profit made when you sell crypto for fiat currency (e.g., GBP) is a taxable event.

  • Example: If you bought BTC for £10,000 and sold it for £15,000, you have a taxable gain of £5,000.

How Investing vs Trading impacts tax

In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.

  • Investing is subject to capital gains tax or income tax, depending on the nature of the transaction.
  • Trading in this case refers to self-employment which is subject to income tax and National Insurance Contributions.

The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.

In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.

If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.

How is crypto tax calculated in the United States?

You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.

CoinLedger

CoinLedger is an accessible crypto tax platform with over 1,000 exchange and wallet integrations.

Best for: Users who want a simple, straightforward experience without complex DeFi needs.

Key differentiator: Offers an unlimited transaction plan for high-volume traders at a fixed price.

Pricing: $49 (100 transactions) to $499+ (10,000+ transactions).

Limitation: Does not generate Schedule D forms - you will need to complete this manually or with other software.

Notable: Strong NFT support with OpenSea integration.

CoinTracker

CoinTracker is a portfolio tracker and tax calculator supporting over 30,000 cryptocurrencies.

Best for: Users who prioritize portfolio tracking alongside tax reporting.

Key differentiator: Direct integrations with TurboTax and H&R Block Desktop.

Pricing: $59 (100 transactions) to $599 (10,000 transactions), with full-service options up to $3,499.

Limitation: Customer support is limited on lower-tier plans - priority support requires the $599 Ultra plan.

Notable: Good security with end-to-end encryption and SOC 2 compliance.

ZenLedger

ZenLedger offers both DIY crypto tax reports and professional full-service accounting.

Best for: Users who want tax loss harvesting included at every pricing tier.

Key differentiator: Tax loss harvesting is available on all plans, not just premium tiers.

Pricing: $49 (100 transactions) to $399 (15,000 transactions).

Limitation: Only offers 400+ exchange integrations - significantly fewer than competitors. Some users report customer support issues with long wait times.

Notable: TurboTax integration and 14-day refund policy.

blog
Jan 14
,
 
2026
 - 
10
min read

Summ Partners with CoinRabbit to Support Accurate Crypto Tax Reporting

We're proud to announce our new partnership with CoinRabbit, a crypto asset management platform with loan, earn, trade and save services whose users often engage in on-chain activity that can carry tax implications.

Key takeaways
This tax guide is regularly updated: Last Update  

At Summ, our goal is to help users turn complex crypto transaction histories into clear, compliant tax reports. That's why we're announcing a new partnership with CoinRabbit, a crypto asset management platform with loan, earn, trade and save services whose users often engage in on-chain activity that can carry tax implications.

If you use CoinRabbit to borrow against crypto, earn yield, or trade, those transactions have tax implications. Getting them into your tax report hasn't always been straightforward.

Summ and CoinRabbit have partnered to make that process simpler. CoinRabbit users can now import their transaction history into Summ via CSV and get it reflected accurately in their crypto tax report.

What this means in practice:

Import your wallets and exchanges, track on-chain and off-chain activity automatically, and generate a tax report you can hand to an accountant or file yourself. CoinRabbit transactions included.

Why this matters

Most crypto tax problems don't come from big trades. They come from gaps: missing transactions, untracked on-chain activity, cost basis that was never recorded. Lending, borrowing, and earning yield sit in that gap for a lot of people.

Summ is built to handle exactly this. It reconciles activity across 3,500+ wallets, exchanges, and blockchains, categorises transactions automatically, and calculates cost basis where it exists. Where data is incomplete, it surfaces that too, rather than hiding it behind a clean-looking number.

What our partnership means

Crypto activity including asset movements, interest, and on-chain interactions can trigger tax reporting obligations depending on local regulations. However, this activity is often spread across multiple wallets, exchanges, and blockchains, making accurate reporting difficult without the right tools.

Through this partnership, CoinRabbit users can use Summ's crypto tax reporting software to:

  • Import wallets and exchanges
  • Track on-chain and off-chain transactions
  • Generate accurate crypto tax reports

This helps ensure crypto activity is fully captured and correctly reflected in tax filings.

Why accurate crypto tax reporting matters

Many crypto tax issues arise not from large trades, but from:

  • Missing transactions
  • Untracked on-chain activity
  • Manual record-keeping errors

As DeFi, lending, and cross-chain activity become more common, using purpose-built crypto tax software is increasingly important for accurate reporting and compliance.

Summ is designed to support these use cases by automatically categorising transactions and calculating cost basis across thousands of data sources.

Catch up on our webinar with CoinRabbit

Justin Zanardi, our Product and GTM Lead, and David Chapman, Senior Director of EMEA, sat down with the CoinRabbit team for a practical session on crypto tax in 2026.

They covered:

  • What regulators actually expect from crypto tax reporting this year
  • Where people are still getting caught out, and why
  • How to reduce risk when your transaction history is messy
  • The story behind the Crypto Tax Calculator to Summ rebrand, what changed and what it means for existing users

If you missed the live session, the recording is below.

Watch the recording

About Summ

Summ is a crypto tax platform built to simplify tax reporting for crypto users worldwide. Summ supports 3,500+ wallets, exchanges, and blockchains, helping users generate compliant, accountant-endorsed tax reports for a wide range of crypto activity, including DeFi and on-chain transactions.

About CoinRabbit

CoinRabbit is a crypto asset management platform that helps you make the most of your digital portfolio. Built on the principles of sound money and long-term value, it lets you borrow against crypto, earn yields, trade hundreds of assets, and preserve your capital. This partnership focuses on helping investors better understand and report the tax implications of their crypto transactions using Summ.

Get started

Already a Summ user? Upload your CoinRabbit CSV in the integrations tab. Takes a few minutes.

New to Summ? Start your free trial and import your CoinRabbit transactions as part of setup.

The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.

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Blog

14 January 2026

X

 Min read

Summ Partners with CoinRabbit to Support Accurate Crypto Tax Reporting

We're proud to announce our new partnership with CoinRabbit, a crypto asset management platform with loan, earn, trade and save services whose users often engage in on-chain activity that can carry tax implications.

Team Summ

This tax guide is regularly updated: Last Update 

....

January

14

2026

At Summ, our goal is to help users turn complex crypto transaction histories into clear, compliant tax reports. That's why we're announcing a new partnership with CoinRabbit, a crypto asset management platform with loan, earn, trade and save services whose users often engage in on-chain activity that can carry tax implications.

If you use CoinRabbit to borrow against crypto, earn yield, or trade, those transactions have tax implications. Getting them into your tax report hasn't always been straightforward.

Summ and CoinRabbit have partnered to make that process simpler. CoinRabbit users can now import their transaction history into Summ via CSV and get it reflected accurately in their crypto tax report.

What this means in practice:

Import your wallets and exchanges, track on-chain and off-chain activity automatically, and generate a tax report you can hand to an accountant or file yourself. CoinRabbit transactions included.

Why this matters

Most crypto tax problems don't come from big trades. They come from gaps: missing transactions, untracked on-chain activity, cost basis that was never recorded. Lending, borrowing, and earning yield sit in that gap for a lot of people.

Summ is built to handle exactly this. It reconciles activity across 3,500+ wallets, exchanges, and blockchains, categorises transactions automatically, and calculates cost basis where it exists. Where data is incomplete, it surfaces that too, rather than hiding it behind a clean-looking number.

What our partnership means

Crypto activity including asset movements, interest, and on-chain interactions can trigger tax reporting obligations depending on local regulations. However, this activity is often spread across multiple wallets, exchanges, and blockchains, making accurate reporting difficult without the right tools.

Through this partnership, CoinRabbit users can use Summ's crypto tax reporting software to:

  • Import wallets and exchanges
  • Track on-chain and off-chain transactions
  • Generate accurate crypto tax reports

This helps ensure crypto activity is fully captured and correctly reflected in tax filings.

Why accurate crypto tax reporting matters

Many crypto tax issues arise not from large trades, but from:

  • Missing transactions
  • Untracked on-chain activity
  • Manual record-keeping errors

As DeFi, lending, and cross-chain activity become more common, using purpose-built crypto tax software is increasingly important for accurate reporting and compliance.

Summ is designed to support these use cases by automatically categorising transactions and calculating cost basis across thousands of data sources.

Catch up on our webinar with CoinRabbit

Justin Zanardi, our Product and GTM Lead, and David Chapman, Senior Director of EMEA, sat down with the CoinRabbit team for a practical session on crypto tax in 2026.

They covered:

  • What regulators actually expect from crypto tax reporting this year
  • Where people are still getting caught out, and why
  • How to reduce risk when your transaction history is messy
  • The story behind the Crypto Tax Calculator to Summ rebrand, what changed and what it means for existing users

If you missed the live session, the recording is below.

Watch the recording

About Summ

Summ is a crypto tax platform built to simplify tax reporting for crypto users worldwide. Summ supports 3,500+ wallets, exchanges, and blockchains, helping users generate compliant, accountant-endorsed tax reports for a wide range of crypto activity, including DeFi and on-chain transactions.

About CoinRabbit

CoinRabbit is a crypto asset management platform that helps you make the most of your digital portfolio. Built on the principles of sound money and long-term value, it lets you borrow against crypto, earn yields, trade hundreds of assets, and preserve your capital. This partnership focuses on helping investors better understand and report the tax implications of their crypto transactions using Summ.

Get started

Already a Summ user? Upload your CoinRabbit CSV in the integrations tab. Takes a few minutes.

New to Summ? Start your free trial and import your CoinRabbit transactions as part of setup.

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Frequently asked questions

What is the best crypto tax software for UK investors?

Summ (formerly Crypto Tax Calculator) is the top choice for UK investors because it: Complies with HMRC rules, including Bed and Breakfast and Same Day. Handles complex transactions like staking, DeFi, and NFTs. Generates HMRC-ready reports, including SA100 and SA108 forms. Integrates with popular accounting tools like QuickBooks. With automated features and a user-friendly interface, Summ simplifies tax reporting, saving you time and reducing errors. Sign up today to experience the difference!

Does Summ support HMRC rules like Bed and Breakfast and Same Day?

Yes, Summ is designed to comply with HMRC-specific rules such as the Bed and Breakfast Rule and the Same Day Rule: Same Day Rule: Automatically groups transactions made within the same day and calculates the adjusted cost basis. Bed and Breakfast Rule: Identifies disposals and repurchases within 30 days, adjusting gains or losses accordingly. By automating these calculations, the software reduces errors and ensures your tax reports meet HMRC standards. Generate detailed tax summaries with just a few clicks and save time during tax season.

Does summ software track both income and capital gains taxes?

Yes, Summ (formerly Crypto Tax Calculator) tracks both Income Tax and Capital Gains Tax (CGT). It categorises transactions based on their tax type: Income Tax: Staking rewards, mining income, or payments received in crypto are calculated based on the market value at receipt. CGT: Disposals like selling or swapping crypto are calculated using HMRC’s average cost basis method. Summ simplifies tracking by separating income and capital gains events, ensuring compliance with HMRC rules. It also generates comprehensive reports that include both types of tax liabilities, ready for inclusion in your tax return.

What types of transactions can summ handle?

Summ supports a wide range of transactions, including: Trading: Buying and selling crypto on exchanges. Staking: Rewards earned from staking activities. Mining: Income from mining cryptocurrencies. Airdrops: Tokens received through promotional events. NFTs: Buying, selling, and holding non-fungible tokens. DeFi activities: Including lending, borrowing, and liquidity pools. The software identifies taxable events, applies HMRC rules, and calculates both income and capital gains for accurate tax reporting.

Can I use summ for previous tax years?

Yes, Summ supports retroactive calculations for prior tax years with a single subscription, helping you: Correct missed or inaccurate filings. Report gains and losses from earlier transactions. Carry forward unused capital losses to offset future gains. The software ensures compliance with historical HMRC rules and generates reports tailored to the tax regulations of the relevant year. Whether you're catching up or filing amended returns, Summ simplifies the process.

What crypto tax software integrates with accounting tools like QuickBooks?

Summ's business product integrates with popular accounting tools like QuickBooks and Xero allowing you to: Import transaction data directly into your accounting software. Track crypto-related income and expenses alongside traditional finances. Generate consolidated reports for tax filings and business accounting. These integrations streamline bookkeeping for both individual investors and businesses, reducing administrative workload while maintaining compliance with UK tax laws.

How does HMRC track cryptocurrency transactions?

HMRC uses advanced tools and methods to monitor crypto activity, including: Exchange data: HMRC requires exchanges operating in the UK to share user data. Blockchain analytics: Sophisticated tools trace transactions across public blockchains. International cooperation: Data-sharing agreements with foreign tax authorities enhance visibility into offshore holdings. Using Summ helps ensure all transactions are accurately reported, minimising the risk of discrepancies or penalties.

Automate your crypto bookkeeping

01

SOC 2 type 2 certified

As SOC 2 Type 2 compliant, we ensure robust data security, giving customers confidence in entrusting us.
02

Secure organization

We conduct regular and thorough Security & Awareness training for all employees.
03

Full data privacy

Our application only ever requires 'read-only' access to your data.