UK HMRC to Defer Capital Gains Tax on Certain Crypto Lending from April 2027, Affecting Approximately 700,000 People
2026-07-17 04:32
Odaily Planet Daily News: HM Revenue & Customs (HMRC) will apply a "no gain, no loss" treatment to certain crypto asset lending and automated market maker liquidity pool transactions starting April 6, 2027. Capital gains tax will generally be deferred until the user makes an economic disposal of the underlying crypto assets.
This measure applies to individuals and trustees and will amend the Taxation of Chargeable Gains Act 1992. Under the current system, selling, exchanging, or consuming crypto assets may trigger capital gains tax, at 18% for basic rate taxpayers and 24% for higher rate taxpayers.
HMRC stated that the policy aims to achieve fairness, with gains and losses typically recognized when participants actually economically dispose of the crypto assets. The change is expected to affect approximately 700,000 individuals who use crypto loans or liquidity pool arrangements.
The measure covers single crypto asset lending, borrowing arrangements, and automated market making arrangements. Upon exit, the relevant treatment applies only to the extent that the user receives the same quantity of assets as initially provided; any difference will result in a taxable gain or loss.
This measure applies to individuals and trustees and will amend the Taxation of Chargeable Gains Act 1992. Under the current system, selling, exchanging, or consuming crypto assets may trigger capital gains tax, at 18% for basic rate taxpayers and 24% for higher rate taxpayers.
HMRC stated that the policy aims to achieve fairness, with gains and losses typically recognized when participants actually economically dispose of the crypto assets. The change is expected to affect approximately 700,000 individuals who use crypto loans or liquidity pool arrangements.
The measure covers single crypto asset lending, borrowing arrangements, and automated market making arrangements. Upon exit, the relevant treatment applies only to the extent that the user receives the same quantity of assets as initially provided; any difference will result in a taxable gain or loss.
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