UK government defers capital gains on certain crypto with ‘no gain, no loss’ approach
Summary
HM Revenue and Customs plans a major crypto tax change starting April 6, 2027: certain transfers involving crypto lending and liquidity pools will be treated on a “no gain, no loss” basis. That means capital gains tax will generally be deferred until an “economic disposal” of the cryptoassets rather than at the point of entering or exiting these arrangements. The rule is intended to better match tax treatment with the economics of lending and liquidity pool participation and to reduce admin burden. HMRC says the measure could affect about 700,000 individuals and trustees. It marks a shift from prior guidance issued in 2022. Under current UK rules, crypto capital gains are taxed at 18% to 24% depending on income band.
