Response to HMRC's Draft Legislation on Cryptoasset Loans and Liquidity Pools

HMRC is proposing new rules for the taxation of cryptoasset lending, borrowing and liquidity pools, including a move to “no gain, no loss” treatment for qualifying arrangements. This would mean that lending Bitcoin and later receiving Bitcoin of the same type back should not itself trigger a capital gains tax charge. Bitcoin Policy UK supports this core approach, which reflects its longstanding position that lending Bitcoin should not be treated in the same way as disposing of it. This ...