What the draft legislation covers
The tax treatment of some cryptoassets will shift under draft legislation for Finance Bill 2026–27. In short, tax rules for cryptoassets set to change across three key areas:
- Qualifying stablecoins
- Cryptoasset loans
- Liquidity pools
Together, these measures aim to bring clarity to a fast-moving market. Moreover, they respond directly to long-standing calls from taxpayers and advisers.
How stablecoins will be treated
Eligible stablecoins should soon behave more like money for tax purposes. Specifically, the changes affect three taxes:
- Capital Gains Tax (CGT)
- Income Tax
- Corporation Tax
Currently, holders face uncertainty over how each disposal is taxed. Consequently, the government intends to introduce clearer rules. These changes are expected to apply from April 2027.
Loans and liquidity pools
New rules will also cover certain transactions involving cryptoasset loans and liquidity pools. Generally, qualifying disposals will fall to be treated on a ‘no gain, no loss’ basis for CGT purposes.
This approach serves a clear purpose. Often, a taxpayer places assets into a pool without truly parting with them economically. Therefore, the rules prevent a taxable gain or loss arising where no economic disposal has occurred.
Why the changes matter now
Use of cryptoassets continues to grow rapidly. Meanwhile, the existing rules were never designed with stablecoins or liquidity pools in mind. As a result, taxpayers have faced awkward outcomes and difficult record-keeping.
HMRC has published draft legislation alongside supporting material for technical consultation. Furthermore, the department expects to issue additional guidance before the rules take effect. Interested parties can therefore comment while the detail remains open.
What you should do next
Although April 2027 feels distant, preparation pays off. With tax rules for cryptoassets set to change, consider taking these steps now:
- Review your current cryptoasset holdings and how you record them
- Identify any stablecoin activity that the new rules may affect
- Check your involvement in lending arrangements or liquidity pools
- Keep detailed records of acquisitions, disposals and pool transactions
- Monitor HMRC guidance as it develops
Talk to us about your cryptoassets
Do you hold, trade or lend cryptoassets? Contact our team today. We will explain how the proposals affect you and help you prepare well ahead of April 2027.
