Svmuu News: Starting April 6, 2027, Her Majesty’s Revenue and Customs (HMRC) will apply a “no gain, no loss” treatment to certain crypto asset lending and automated market-making liquidity pool transactions; capital gains tax is typically deferred until the user makes an economic disposition of the underlying crypto assets.
This measure applies to individuals and trustees and will amend the Capital Gains Tax Act 1992. Under the current system, the sale, exchange, or consumption of crypto assets may trigger capital gains tax, with a rate of 18% for taxpayers in the basic tax bracket and 24% for those in the higher tax bracket.
HMRC states that the policy aims to ensure fairness, and that gains and losses should generally be recognized when participants actually dispose of their crypto assets. The change is expected to affect approximately 700,000 individuals who use crypto lending or liquidity pool arrangements.
The measure covers single-crypto lending, borrowing arrangements, and automated market-making arrangements. Upon exit, the relevant treatment applies only to the extent that the user receives the same amount of assets as the initial investment; any difference will result in a taxable gain or loss.