How to claim Trading Allowance on miscellaneous income

I have received just over £2000 income from cryptocurrency staking/interest in the tax year 21/22. I understand HMRC does not consider this to be "interest" or savings income so it should be declared as miscellaneous income in box 17 of form SA100 page TR3. I believe I can claim the Trading Allowance of £1000 on this income, however there doesn't appear to be anywhere on SA100 to claim the Trading Allowance. Am I supposed to subtract the £1000 allowance from my miscellaneous income and enter the remainder in box 17 (i.e. only enter taxable miscellaneous income after trading allowance has been applied)? Or do I have to leave box 17 blank and declare the miscellaneous income via SA103S as if it were self-employment income in order to claim the trading allowance on that form?

Hi,
 

You would need to consider if you are trading in the sense of self employment first to be able to claim the trading allowance. See Link: Capital Gains Manual   . Thank you.

Hello, Thanks for your response. I don't believe I am trading in the sense of self employment. In fact the income is not derived from trading (i.e. buying and selling) so i'm not sure the Capital Gains Manual that you linked to is relevant. The income is interest on cryptocurrency assets that I have retained beneficial ownership of throughout the tax year. However, as HMRC do not recognise this a interest (per CRYPTO61110) I believe it has to be declared as "miscellaneous income". Could you confirm if that is correct? Assuming it is correct, BIM86000 - Trading and Miscellaneous Income Allowance says that "Individuals whose relevant income from a relevant trade or Miscellaneous Income is more than the trading allowance can... [treat] their taxable profit as the amount by which their total relevant income exceeds the trading allowance... by making an election for partial relief." Again, could you confirm if I am correct in thinking this relief is applicable and is so advise how to make an election for partial relief in the self assessment form(s)? Thanks.

Hi ah306,

HMRC dos not reconise the return earned to be interest for tax purposes.

That if the return has the nature of income, then it will likely be within the scope of miscelanaeous income.

As such, you may apply the £1000.00 trading and Misc income allowance.

BIM86000 - Trading and Miscellaneous Income Allowance (TMIA)

Tax-free allowances on property and trading income  

If misc income is less than the £1000.00, then you need not declare the income, if more than £1,000 you can deduct the allowance and then declares the balance.

Entry for Misc income is at Box 17 of the main Self Assessment return.

Thank you.