Even the most complex DeFi taxes made simple
Automated wallet tracking for chains like Ethereum, Binance Smart Chain and Polygon make calculating tax easy and accurate, even for degens with complex portfolio’s.
Recognises DeFi lending, staking and liquidity pools
Support for DEXs like Uniswap, Pancake Swap and Curve
Simply type in your wallet address to sync
Complicated tax scenarios like staking, liquidity pools and loans made simple
Recap automatically categorises and calculates the tax on complex DeFi transactions.
Automatically calculate gains from your staking positions
Support for DEX's like Uniswap, Sushiswap and Curve
Automatic calculations for liquidity pools
Accurate DeFi tax calculations based on the latest regulations
There’s not always a definitive answer when it comes to DeFi taxes but Recap’s intuitive software ensures you take a consistent approach in line with HMRC guidance.
Taxable events and change in beneficial ownership automatically identified
Capital or income in nature
On the pulse with new DeFi regulation so you don’t need to be
FAQs
- Is DeFi trading taxable in the UK?
Yes. In most tax jurisdictions DeFi activity is taxable. HMRC have issued detailed guidance on the tax treatment of DeFi activity which we summarise in our DeFi tax guide.
- Is Recap’s Ethereum integration really automated?
Yes, Recap's Ethereum integration is fully automated. Connect your wallet by pasting in your public wallet address, and your transactions will be fetched and updated in almost real-time.
- Do tax authorities know about my DeFi activity?
It's likely that tax authorities like HMRC and the IRS know about some DeFi activity. Although many DeFi protocols don't require KYC, it's possible to link user activity between accounts and wallets. Users engaged in DeFi should be compliant with the tax rules of their jurisdiction.
- What is DeFi?
DeFi, short for Decentralised Finance, operates on blockchains like Ethereum and Solana, using smart contracts to automate transactions, making activities such as trading, borrowing, lending, and liquidity pools more accessible to global users.
- Does Recap support all blockchains?
Recap supports all blockchains by CSV or manual entry and has automated integrations for Ethereum, Binance Smart Chain and Polygon. Check out all our integrations.
- Why is DeFi tax so complicated?
DeFi tax is complicated because different tax treatments apply depending on whether the nature of the transaction is capital or income and whether beneficial ownership of the token changes. This has to be considered carefully for individual transactions as it varies depending on the different smart contracts and mechanisms employed by the blockchain or protocol.