The UK’s HM Revenue & Customs said certain cryptoasset lending transactions and automated market maker liquidity pool transactions will receive “no gain, no loss” treatment starting April 6, 2027. In practice, capital gains tax will usually be deferred until a user makes an economic disposal of the underlying cryptoassets. The measure will apply to individuals and trustees and will amend the Taxation of Chargeable Gains Act 1992. Under the current system, selling, exchanging, or spending cryptoassets can trigger capital gains tax, with rates of 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. HMRC said the policy is aimed at fairness, so gains and losses are generally recognized when participants actually dispose of their cryptoassets economically. The change is expected to affect around 700,000 individuals who use crypto lending or liquidity pool arrangements. It will cover single cryptoasset lending, borrowing arrangements, and automated market maker arrangements. On exit, the treatment applies only to the extent users receive the same quantity of assets they originally contributed; any difference will give rise to a taxable gain or loss.
According to Odaily, HM Revenue & Customs (HMRC) will apply “no gain, no loss” treatment to certain cryptoasset lending transactions and automated market maker liquidity pool transactions from April 6, 2027. Capital gains tax will usually be deferred until the user makes an economic disposal of the underlying cryptoassets.
The measure will apply to individuals and trustees and will amend the Taxation of Chargeable Gains Act 1992. Under the current system, selling, exchanging, or spending cryptoassets can trigger capital gains tax. The rate is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers.
HMRC said the policy is intended to achieve fairness, with gains and losses generally recognized when participants actually make an economic disposal of their cryptoassets. The change is expected to affect about 700,000 individuals using crypto lending or liquidity pool arrangements.
The measure covers single cryptoasset lending, borrowing arrangements, and automated market maker arrangements. On exit, the treatment applies only to the extent that the user receives the same quantity of assets as originally contributed. Any difference will result in a taxable gain or loss.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
