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UK HMRC applies ‘no gain, no loss’ tax treatment to some crypto lending

The tax treatment would defer capital gains tax until an economic disposal, according to The Block.

Reported · Written up by our desk · Regulation

The Block reports that the UK tax authority, HMRC, has adopted a “no gain, no loss” approach for certain crypto lending arrangements and liquidity pool transactions.

Under the framework, HMRC plans to defer capital gains tax, applying it only when the parties have an “economic disposal” rather than at earlier stages of the transaction.

The change is designed to address how gains and losses are recognized for specific crypto activities, including loans and liquidity pool use, within the UK’s capital gains tax rules.

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