Cryptocurrency airdrop clarification

Hello I have read the guidance on cryptocurrency airdrops here: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto21250 It states: “Income Tax may not apply if they’re received: without doing anything in return (for example, not related to any service or other conditions) not as part of a trade or business involving cryptoasset exchange tokens or mining” My question is: if all I did to receive an airdrop was to send tokens to an address and then I was sent all of these tokens back at a later date, would this be classified as “without doing anything in return (for example, not related to any service or other conditions)”, and therefore the airdropped tokens are not taxable? I am not sure how to interpret “not related to any service or other conditions” and so I am seeking clarification. Many thanks Neil

Hi,

In return for a service is broad language, and could cover a lot of different scenarios, for example, sharing a social media post, or signing up to use a particular platform.

As you had to send tokens to an address this is seen as a service and therefore liable to Income Tax. When you receive airdrops of crypto that are subject to Income Tax, you’ll pay tax based on the fair market value in GBP at the time you received them. 

Thank you.