Economics
Can I write off mining equipment as a business expense?
In the UK, mining hardware qualifies for 100% Annual Investment Allowance. Electricity is deductible as a business expense. Full breakdown inside.
Yes, in most jurisdictions. In the UK, mining can be registered as a business activity, which unlocks significant tax advantages:
| Expense | Tax Treatment (UK) | Benefit |
|---|---|---|
| Mining hardware | Capital Allowances (AIA) | 100% deduction in year of purchase |
| Electricity | Business operating expense | Deductible from revenue |
| Internet / hosting | Business expense | Proportional deduction |
| Mining revenue | Trading income | Taxed as income, not capital gains |
| GPU resale | Capital disposal | Offset against original cost |
⚠️ This is general information only — consult a tax professional for your specific situation. Tax treatment can vary based on whether mining is classified as a trade or investment activity.