A consultation published this week sets out how staking and lending rewards should be taxed, proposing recognition at the point rewards become controllable by the holder.
Fund managers had argued for deferral until disposal, on the basis that automatic reinvestment never gives the investor spendable income. The draft partially accepts that for authorised vehicles.
Accountants warn that valuation at receipt is administratively heavy for validators receiving frequent small rewards, and have asked for a periodic averaging option.
The consultation also seeks views on whether slashing losses should be deductible in the year they occur.
Responses are due before the autumn, with draft legislation expected to follow in the next finance bill cycle.
