Does MetaMask report to HMRC?

No. MetaMask is a self-custody wallet and does not send tax documents to HMRC. HMRC's guidance in the Cryptoassets Manual covers on-chain activity including DeFi, and you are responsible for self-reporting all disposals via Self Assessment. HMRC is expanding its crypto data-sharing arrangements, so accurate reporting from your wallet records is increasingly important.

How does Section 104 pooling apply to MetaMask tokens?

Section 104 pooling applies to each type of fungible ERC-20 token in your MetaMask wallet - ETH, USDC, and other ERC-20s each have their own pool. All acquisitions of a given token type - whether from Coinbase, Uniswap, Aave rewards, or airdrops - go into the same pool at a weighted average cost. When you dispose, the allowable cost comes from the pool average. NFTs are not pooled and are tracked separately with their own individual allowable cost. Transfers between your own MetaMask addresses are generally not acquisitions or disposals if beneficial ownership does not change. The same-day rule and 30-day bed and breakfast rule override the pool when triggered.

How are DeFi deposits and withdrawals treated under HMRC rules?

HMRC's Cryptoassets Manual addresses some DeFi scenarios. Lending and staking where you retain beneficial ownership may not trigger a disposal, but where you exchange one token for another (such as depositing ETH and receiving a different protocol token), HMRC may treat this as a disposal and reacquisition. The facts of each protocol matter. DYOR.tax records all DeFi interactions so you can review them with a UK tax adviser.

How are staking rewards from MetaMask taxed in the UK?

If the activity does not amount to a trade, staking rewards received into your MetaMask wallet are generally treated as miscellaneous income at their sterling value on the date received. The income amount enters your Self Assessment. When you later dispose of those rewards, the disposal goes through the Section 104 pool using the sterling value at receipt as the allowable cost, potentially triggering a Capital Gains Tax liability.

MetaMask Tax Calculator UK - DeFi & HMRC

HMRC and your MetaMask wallet

HMRC's Cryptoassets Manual (CRYPTO22000 onwards) sets out how on-chain activity is taxed for UK individuals. Token swaps via Uniswap or MetaMask's built-in aggregator are disposals. Receiving DeFi rewards is generally income. Bridging across chains requires individual analysis. HMRC has issued some DeFi-specific guidance, but many on-chain interactions still rely on general property and capital gains principles.

MetaMask does not issue any tax documentation for UK users. HMRC does not currently receive automatic data from self-custody wallets, but HMRC does have powers to request data from exchanges and blockchain analytics providers. Accurate self-reporting from your wallet records is important regardless of what HMRC can see directly.

Section 104 pooling for ERC-20 tokens

For UK individual taxpayers, Section 104 pooling applies to each type of fungible token you hold. All acquisitions of a given token type - whether bought on Coinbase, swapped on Uniswap, or received as a DeFi reward - go into a single weighted average pool. NFTs are not pooled and are tracked separately with their own individual allowable cost. When you dispose of a fungible token, the allowable cost is calculated from the pool's average price per unit at the time of disposal.

Two override rules take priority when triggered. The same-day rule matches disposals to any acquisitions on the same day before consulting the pool. The 30-day bed and breakfast rule matches disposals to reacquisitions in the following 30 days, preventing artificial loss harvesting and immediate rebuying.

Our Section 104 implementation is validated against all six official HMRC cryptoasset examples (CRYPTO22251-CRYPTO22256). The report shows each disposal's match type - same-day, B&B, or pool - in the SA108 filing table.

DeFi on-chain activity and HMRC

HMRC has issued guidance on some DeFi scenarios (CRYPTO60000 onwards). Key points for MetaMask users:

Staking and lending where you receive a different token (e.g., depositing ETH and receiving stETH) may be treated as a disposal and reacquisition. The nature of the transaction and whether beneficial ownership is transferred determines the treatment.
LP positions (Uniswap V2/V3, Curve) are addressed in HMRC's DeFi guidance. Adding liquidity may be treated as a disposal of deposited tokens if the LP tokens represent a materially different asset. HMRC's guidance acknowledges these are complex and fact-specific.
Staking rewards and DeFi income: if the activity does not amount to a trade, rewards received are generally treated as miscellaneous income at their sterling value on receipt.
Gas fees: HMRC allows reasonable acquisition and disposal costs to be included in your calculation. Each ETH gas payment may also be an ETH disposal itself.

NFTs in MetaMask - individually identified, not pooled

Section 104 pooling applies only to fungible tokens. NFTs held in MetaMask are treated as individually identified assets by HMRC. Each NFT has its own allowable cost based on what you paid in sterling when you acquired it. When you sell an NFT - on OpenSea, Blur, or any other marketplace - the gain or loss is calculated from that individual allowable cost, not from a pool average. DYOR.tax records each NFT separately from your fungible token pools.

Transfers of NFTs between your own MetaMask addresses generally do not constitute a disposal provided beneficial ownership remains with you throughout. However, any transfer to a third party, including a sale or gift, is a disposal event requiring CGT analysis.

CGT rates and the Annual Exempt Amount

The CGT Annual Exempt Amount is £3,000 for 2025-26 and 2026-27. Net capital gains from all cryptoasset disposals - including MetaMask on-chain activity - below this threshold owe no CGT.

CGT rates on crypto disposals are 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers (updated from October 2024). These rates apply after the Annual Exempt Amount and are stacked on top of other income to determine which rate applies to each pound of gain.

Capital losses from MetaMask activity can be offset against gains from the same wallet, from exchange activity, and from other capital assets within the same tax year. Unused capital losses can generally be carried forward indefinitely once claimed with HMRC.

Two additional UK points worth noting: if you are already registered for Self Assessment, you will generally need to report disposals where total proceeds exceed £50,000 in a tax year, even if the gain is below the Annual Exempt Amount. Additionally, if you arrived in the UK recently and are using the Foreign Income and Gains (FIG) regime, this may affect how the Annual Exempt Amount applies to you - speak with a UK tax adviser if this is relevant.

You must notify HMRC by 5 October 2026 if you have unreported gains or income from the 2025-26 tax year, and file your Self Assessment return online by 31 January 2027.

Related calculators and guides

All countries: MetaMask Tax Calculator
UK country page: UK Crypto Tax Calculator
Other MetaMask countries: MetaMask USA · MetaMask Canada · MetaMask Australia

DeFi guides: Uniswap Tax Calculator · Aave Tax Calculator · Lido Staking Taxes · DeFi Lending Taxes

Frequently Asked Questions

No. MetaMask is a self-custody wallet and does not send tax documents to HMRC. You are responsible for self-reporting all disposals and income via Self Assessment. HMRC's data-sharing arrangements are expanding, but your wallet records remain your own responsibility to calculate and report.

Section 104 pooling applies to each type of fungible ERC-20 token in your MetaMask wallet - ETH, USDC, and other ERC-20s each have their own pool. All acquisitions of a given token type - whether from Coinbase, Uniswap, Aave rewards, or airdrops - go into the same pool at a weighted average cost. NFTs are not pooled and are tracked separately with their own individual allowable cost. Transfers between your own MetaMask addresses are generally not acquisitions or disposals if beneficial ownership does not change. Same-day and 30-day bed and breakfast rules override the pool when triggered.

HMRC's DeFi guidance addresses scenarios where you exchange one token for another (potentially a disposal) versus lending where beneficial ownership is retained (potentially not a disposal). The facts of each protocol matter. DYOR.tax records all DeFi interactions in your MetaMask history so you can review them with a UK adviser.

If the activity does not amount to a trade, staking rewards received into your MetaMask wallet are generally treated as miscellaneous income at their sterling value on receipt. The income value enters your Self Assessment. When you later dispose of those rewards, the disposal goes through the Section 104 pool using the sterling value at receipt as the allowable cost.

The Annual Exempt Amount is £3,000 for 2025-26 and 2026-27. Net capital gains from MetaMask activity below this threshold owe no CGT. CGT rates are 18% (basic-rate) and 24% (higher/additional-rate) following the October 2024 change. Unused capital losses can be offset against gains in the same year and carried forward indefinitely once claimed with HMRC.

No. NFTs are individually identified assets and are not pooled under Section 104. Each NFT has its own allowable cost based on what you paid in sterling to acquire it. When you sell an NFT, the gain or loss is calculated from that individual allowable cost. DYOR.tax tracks each NFT separately from your fungible token pools.

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