When Kraken provides staking rewards, Cointracker currently considers 100% of the reward as 'staking income' and then considers the 20% fee paid to Kraken as a token sale that gets subject to capital gains. UK tax guidance, however, is clear that staking income should exclude any associated costs.

"If the activity does not amount to a trade, the pound sterling value (at the time of receipt) of any tokens awarded will be taxable as income (miscellaneous income) with any appropriate expenses reducing the amount chargeable."

Thus, the correct treatment should have been to consider 80% of the reward amount as 'staking income' and for the remaining amount to not be considered as a receipt at all (thus no need for any capital gains eligible transaction for the fee).

As it currently stands, the 'staking income' calculated by Cointracker for UK customers is overstating the true figure and without any manual correction would result in a higher tax liability for customers.