diff --git a/zcash_client_backend/src/wallet.rs b/zcash_client_backend/src/wallet.rs
index c120ba599..22df1cba1 100644
--- a/zcash_client_backend/src/wallet.rs
+++ b/zcash_client_backend/src/wallet.rs
@@ -25,6 +25,7 @@ pub struct WalletTx {
 pub struct WalletShieldedSpend {
     pub index: usize,
     pub nf: Vec<u8>,
+    pub account: usize,
 }
 
 /// A subset of an [`OutputDescription`] relevant to wallets and light clients.
@@ -37,4 +38,5 @@ pub struct WalletShieldedOutput {
     pub account: usize,
     pub note: Note<Bls12>,
     pub to: PaymentAddress<Bls12>,
+    pub is_change: bool,
 }
diff --git a/zcash_client_backend/src/welding_rig.rs b/zcash_client_backend/src/welding_rig.rs
index 0b5a01f5f..b8310e35f 100644
--- a/zcash_client_backend/src/welding_rig.rs
+++ b/zcash_client_backend/src/welding_rig.rs
@@ -2,6 +2,7 @@
 
 use ff::{PrimeField, PrimeFieldRepr};
 use pairing::bls12_381::{Bls12, Fr, FrRepr};
+use std::collections::HashSet;
 use zcash_primitives::{
     jubjub::{edwards, fs::Fs},
     merkle_tree::{CommitmentTree, IncrementalWitness},
@@ -25,6 +26,7 @@ use crate::wallet::{WalletShieldedOutput, WalletShieldedSpend, WalletTx};
 fn scan_output(
     (index, output): (usize, CompactOutput),
     ivks: &[Fs],
+    spent_from_accounts: &HashSet<usize>,
     tree: &mut CommitmentTree<Node>,
     existing_witnesses: &mut [&mut IncrementalWitness<Node>],
     new_witnesses: &mut [IncrementalWitness<Node>],
@@ -64,6 +66,14 @@ fn scan_output(
             None => continue,
         };
 
+        // A note is marked as "change" if the account that received it
+        // also spent notes in the same transaction. This will catch,
+        // for instance:
+        // - Change created by spending fractions of notes.
+        // - Notes created by consolidation transactions.
+        // - Notes sent from one account to itself.
+        let is_change = spent_from_accounts.contains(&account);
+
         return Some((
             WalletShieldedOutput {
                 index,
@@ -72,6 +82,7 @@ fn scan_output(
                 account,
                 note,
                 to,
+                is_change,
             },
             IncrementalWitness::from_tree(tree),
         ));
@@ -89,7 +100,7 @@ fn scan_output(
 pub fn scan_block(
     block: CompactBlock,
     extfvks: &[ExtendedFullViewingKey],
-    nullifiers: &[&[u8]],
+    nullifiers: &[(&[u8], usize)],
     tree: &mut CommitmentTree<Node>,
     existing_witnesses: &mut [&mut IncrementalWitness<Node>],
 ) -> Vec<(WalletTx, Vec<IncrementalWitness<Node>>)> {
@@ -101,29 +112,45 @@ pub fn scan_block(
         let num_outputs = tx.outputs.len();
 
         // Check for spent notes
-        let shielded_spends: Vec<_> = tx
-            .spends
-            .into_iter()
-            .enumerate()
-            .filter_map(|(index, spend)| {
-                if nullifiers.contains(&&spend.nf[..]) {
-                    Some(WalletShieldedSpend {
-                        index,
-                        nf: spend.nf,
-                    })
-                } else {
-                    None
-                }
-            })
-            .collect();
+        let shielded_spends: Vec<_> =
+            tx.spends
+                .into_iter()
+                .enumerate()
+                .filter_map(|(index, spend)| {
+                    if let Some(account) = nullifiers.iter().find_map(|&(nf, acc)| {
+                        if nf == &spend.nf[..] {
+                            Some(acc)
+                        } else {
+                            None
+                        }
+                    }) {
+                        Some(WalletShieldedSpend {
+                            index,
+                            nf: spend.nf,
+                            account,
+                        })
+                    } else {
+                        None
+                    }
+                })
+                .collect();
+
+        // Collect the set of accounts that were spent from in this transaction
+        let spent_from_accounts: HashSet<_> =
+            shielded_spends.iter().map(|spend| spend.account).collect();
 
         // Check for incoming notes while incrementing tree and witnesses
         let mut shielded_outputs = vec![];
         let mut new_witnesses = vec![];
         for to_scan in tx.outputs.into_iter().enumerate() {
-            if let Some((output, new_witness)) =
-                scan_output(to_scan, &ivks, tree, existing_witnesses, &mut new_witnesses)
-            {
+            if let Some((output, new_witness)) = scan_output(
+                to_scan,
+                &ivks,
+                &spent_from_accounts,
+                tree,
+                existing_witnesses,
+                &mut new_witnesses,
+            ) {
                 shielded_outputs.push(output);
                 new_witnesses.push(new_witness);
             }
@@ -292,12 +319,13 @@ mod tests {
         let extsk = ExtendedSpendingKey::master(&[]);
         let extfvk = ExtendedFullViewingKey::from(&extsk);
         let nf = [7; 32];
+        let account = 12;
 
         let cb = fake_compact_block(1, nf, extfvk, Amount::from_u64(5).unwrap());
         assert_eq!(cb.vtx.len(), 2);
 
         let mut tree = CommitmentTree::new();
-        let txs = scan_block(cb, &[], &[&nf], &mut tree, &mut []);
+        let txs = scan_block(cb, &[], &[(&nf, account)], &mut tree, &mut []);
         assert_eq!(txs.len(), 1);
 
         let (tx, new_witnesses) = &txs[0];
@@ -307,6 +335,7 @@ mod tests {
         assert_eq!(tx.shielded_outputs.len(), 0);
         assert_eq!(tx.shielded_spends[0].index, 0);
         assert_eq!(tx.shielded_spends[0].nf, nf);
+        assert_eq!(tx.shielded_spends[0].account, account);
         assert_eq!(new_witnesses.len(), 0);
     }
 }