Kraken ETH staking taxable event in UK?

[shmod]

Hi, in the context of realising losses for the current tax year, is staking ETH on Kraken a taxable event for the whole amount of ETH that is staked and such would it allow loss harvesting?

Thanks

[Aria_Koinly]

Hi @shmod

Whether staking ETH on Kraken is a taxable event depends on your jurisdiction, and Koinly does not provide tax advice. You should consult a professional accountant to determine if your ETH staking qualifies as a taxable event in your specific case.

If you want ETH > ETH2 transactions to be treated as tax-free in Koinly, you can apply the Swap tag to them. This ensures Koinly does not count it as a disposal.

What are Tags

Read more about staking in Koinly in Staking and farming tokens.

[Kent]

Transaction is tagged as swap with “stakingfromspot” but still shows up in CGT report, what am I missing?

[Aria_Koinly]

Hi Kent,

Apologies for overlooking that you’re in the UK. The Swap tag does not work for accounts using the Shared Pool cost basis method, which applies to UK users.

If you want to make your ETH → ETH2 transactions tax-free, you can:

1- Use the Change Currency feature to change ETH2 to ETH.

2- Then you will have some ETH → ETH trades since ETH2 has been replaced by ETH.

3- Delete all ETH → ETH trades.

This way, you simply remove ETH2 from the equation, however, I suggest you consult your tax accountant to see if this can be applied to your transactions.