How are crypto airdrops taxed in the UK?
The tax treatment of an airdrop depends on why you received it. If you did nothing in return — no service, no expectation, not part of a trade — it generally isn't income when it arrives, but its value still becomes your cost basis for CGT when you later dispose of it. If you received it in return for doing something (promotional tasks, services, as part of a trade), it's usually taxable as miscellaneous income at its value on receipt. Either way, selling or swapping the airdropped tokens later is a normal CGT disposal.
The earning test
The question HMRC asks is whether the airdrop was provided in return for, or in expectation of, a service. Retweet-to-receive campaigns, testnet participation rewards, and tokens received for promotional tasks point to income. Tokens that simply appear because you held another asset at a snapshot date — with nothing asked of you — point away from income.
Genuinely unsolicited airdrops with no strings are the clean case: no income on receipt. The messy middle (was clicking "claim" a service? was holding a token "participation"?) is genuinely judgement territory, which is why serial airdrop farmers should take advice.
The CGT side is always there
Whatever happened on receipt, the tokens now sit in a Section 104 pool with a cost basis: their market value at receipt if they were taxed as income, or their value on acquisition if not (which for a free, no-strings airdrop of a new token may be its value at the time you received it). When you sell, swap or spend them, normal disposal rules apply — same-day, 30-day, then the pool.
Worthless airdrops you never asked for and never touch can usually just be ignored until you do something with them.
Run your own numbers — free
Our calculator applies these rules to your transactions and shows the full working for every disposal — same-day, 30-day and Section 104 matching, per tax year.
Open the calculator →Frequently asked questions
I got scam tokens airdropped into my wallet. Do I owe tax?
Receiving unsolicited junk isn't income for doing nothing, and if you never sell (often you can't), there's no disposal. Don't interact with scam-token contracts at all.
How do I value an airdrop with no market yet?
Use a reasonable GBP valuation at the time you gained control — first exchange listing price is a common proxy. Keep a note of how you valued it; consistency and documentation matter.
Are fork coins treated like airdrops?
Hard-fork coins have their own treatment: the original allowable cost is apportioned between the old and new tokens, rather than the new coins being income. It's another situation worth professional advice at scale.
Sources & methodology
Tool v0.2.0 · sources last checked 6 July 2026. This guide is general information, not tax or financial advice — verify your position with a qualified professional before filing.