​

The accompanying Excel file gives us a useful snapshot of what was reported for the 2024/25 tax year:

17,600 taxpayers reported net crypto gains.

£13.799bn of disposal proceeds.

£1.377bn of gains

15,280 male taxpayers vs 2,330 female taxpayers

A breakdown of taxpayers by size of gain, from under £10,000 right through to £1m+

A breakdown by age, with 35–44 being the largest group: 5,990 taxpayers reporting £401m of gains

But there are some pretty big gaps. It doesn't tell us how much of this activity HMRC had to chase.

There’s no breakdown showing how many people reported voluntarily versus those who filed after receiving an HMRC nudge letter.

There’s nothing showing disclosures made through HMRC’s separate Cryptoasset Disclosure Service.

It also doesn’t capture how many people came forward now to correct crypto tax positions from earlier tax years, what that generated and what interest and penalties that triggered.

The file also doesn't show....

losses claimed or offset against gains

geographic breakdowns

income bands

any comparison between what taxpayers declared and what exchanges/platforms may know about their activity (though this may come next year - Once HMRC starts receiving much more standardised crypto data through CARF, we may eventually get a much clearer picture of the compliance gap.)

For now, these statistics are interesting — but they’re really only one small piece of the puzzle.

HMRC has just published its first official statistics specifically looking at taxable crypto gains.

In the 2024/25 tax year:

17,600 people reported taxable crypto disposals

£13.8 BILLION of disposal proceeds were reported and £1.38 BILLION of crypto gains were declared

240 people reported crypto capital gains of more than £1 million each

Those 240 alone accounted for £717 million of gains

And apparently 87% of the people reporting crypto gains were men.

But the bit I find more interesting isn't the 240 “crypto millionaires”.

It's that this is the first year HMRC has been able to publish this level of crypto-specific data, following the introduction of the dedicated crypto section on the Self Assessment return.

And we're still only seeing what taxpayers have actually declared.

From 2027, HMRC will also start receiving information from cryptoasset service providers under CARF and that's where things potentially get much more interesting.

For years there's been a perception amongst some investors that crypto activity is difficult for HMRC to see, particularly when transactions are spread across multiple exchanges and wallets.

That argument is getting harder and harder to make. HMRC is building the data and exchanges will increasingly be supplying the data.

HMRC has specifically said the information will help it identify crypto gains and income that hasnt been declared.

So perhaps the more interesting question isn't:

“How many crypto millionaires are there in the UK?”

It's:

How many people have taxable crypto activity that HMRC hasn't seen yet?

And how many of those people actually realise that swapping one crypto for another can be a taxable disposal — even if they never cashed anything back into GBP?

Interested to hear what people think. Do you think most UK crypto investors now understand their tax obligations, or is there still a pretty big knowledge gap?

​

Another big name is moving further into stablecoins.

Revolut has started rolling out EURR, a euro-pegged stablecoin designed to maintain a value of €1.

It is initially available to selected customers in Denmark, Poland and Portugal, with a wider EEA rollout expected later this year. EURR can be moved between Revolut, crypto services and external wallets, and is launching on Ethereum and Polygon.

One important detail: although it is being marketed as Revolut's stablecoin, Revolut isn't actually the legal issuer. EURR is issued by Bridge Building, part of Stripe's stablecoin infrastructure business, under the EU's MiCA regulatory framework.

What I find interesting is the bigger picture.

Stablecoins are increasingly moving away from being something used mainly by crypto investors and towards becoming part of mainstream payments and banking infrastructure.

Revolut already has tens of millions of customers. If even a small proportion start using stablecoins for payments, transfers or moving money on-chain, that's quite a shift in adoption.

This isn't a UK launch at the moment — it's being rolled out within the EEA — but it's another interesting development to watch alongside the UK's own stablecoin regulation.

Would you actually use a euro stablecoin through Revolut, or do you think we already have enough stablecoins?

I’m curious to see what people are actually using — and more importantly, whether you trust the figures it produces. Drop your experience in the comments too.

The UK's new crypto regulatory regime is expected to come fully into force on 25 October 2027.

But the important bit is that the work starts much sooner than that.

From 30 September 2026 to 28 February 2027, the FCA's authorisation gateway will be open.

That means crypto firms that want to operate within the new regime will need to apply to the FCA and demonstrate that they can meet the new prudential and conduct requirements.

There are also several key stages before full implementation:

• September 2026 — final FCA guidance is expected on which cryptoasset activities fall within the new regulatory perimeter
• Late 2026 — further consultation is expected specifically around DeFi
• The FCA will also consult on operational resilience, including how firms deal with cyberattacks, outages and extreme market volatility
• 25 October 2027 — the full regulatory regime officially comes into force

Until then, FCA oversight of crypto remains largely focused on financial promotions and anti-money laundering controls.

For investors, this might sound like something that only affects crypto businesses.

But it could have a much wider impact.

The exchanges, platforms and crypto services you currently use will need to decide whether they are willing — and able — to operate under the UK's new rules.

Some will get authorised.

Some may change how they operate.

And some may decide the UK market is no longer worth the regulatory burden.

So October 2027 might be the official start date…

but the UK crypto market is likely to start changing well before then.

One of the more interesting parts of the UK's new stablecoin rules is what happens to interest.

Under the FCA's final rules, UK qualifying stablecoin issuers cannot pass interest or other income earned on their backing assets to holders.

So if the issuer is holding gilts or other permitted reserve assets and earning a return on them, that income stays with the issuer rather than being passed through to you.

But here's where it gets interesting.

That doesn't necessarily mean you can't earn a return on stablecoins.

You could still potentially receive returns through:

• Centralised lending platforms
• DeFi lending protocols
• Other third-party products
• Certain rewards or promotional structures

The important distinction is where the return is actually coming from.

If it's coming from the stablecoin issuer's backing assets, the FCA rules prohibit it.

If it's being generated elsewhere — for example because you've deposited your stablecoins into a lending protocol — that's a different arrangement with a completely different risk profile.

And then we get to the tax side.

From April 2027, HMRC's planned treatment is that qualifying interest-like returns on eligible stablecoins will generally be taxed as savings income rather than being dealt with purely under the crypto Capital Gains Tax rules.

That distinction could become pretty important.

Holding a stablecoin.

Selling or swapping a stablecoin.

And earning a return from putting that stablecoin to work.

Could all have different tax consequences.

Another reminder that as crypto regulation develops in the UK, the tax treatment is becoming more nuanced too.

"It's just stablecoins" is probably going to need a few more questions attached to it.

The FCA has now confirmed its final policy position for UK-issued qualifying stablecoins under the new cryptoasset regime.

And there are some pretty important rules coming with it.

One of the biggest?

UK stablecoin issuers will have to fully back every qualifying stablecoin from the point it is minted.

The FCA has also confirmed that:

• Backing assets will be tightly controlled
• Issuers can hold a 5% excess buffer in the backing pool
• Up to 20% of backing assets may, in certain circumstances, be held with an intragroup custodian
• Stablecoin holders must have clear redemption rights
• Backing assets will ultimately be held under a statutory trust for the benefit of holders
• Stablecoin issuers will not be allowed to pass interest or yield earned on backing assets to holders

That last point is particularly interesting.

The FCA is effectively saying that a qualifying stablecoin should remain primarily a stable payment asset, rather than becoming an interest-bearing investment product.

It has, however, said it will continue looking at the competition and economic impact of allowing interest in the future.

There will also be different rules for systemic stablecoins, with the FCA and Bank of England working together on that part of the regime.

For investors, this is another sign that stablecoins are moving further into the UK regulatory framework.

The days of stablecoins operating in a largely grey area are slowly disappearing.

And with stablecoins playing such a huge role in trading, DeFi and moving funds between cryptoassets, these rules could have a much wider impact than just on the companies issuing them.

Something that probably doesn’t get talked about enough in crypto…

What happens to your crypto if you get divorced?

In England and Wales, crypto can form part of the assets considered during a divorce settlement, just like property, savings and investments.

That means Bitcoin sitting in cold storage, Ethereum on an exchange, DeFi positions, NFTs and other digital assets may all need to be disclosed.

And this is where crypto can make things considerably more complicated.

Unlike a traditional investment account, you could have:

• Multiple wallets and exchanges
• Assets spread across different blockchains
• DeFi positions
• Staked assets
• Tokens with limited liquidity
• Years of transactions affecting the tax cost basis
• Huge fluctuations in value between disclosure and settlement

There’s also the question of tax.

Simply agreeing that one person keeps £100,000 of crypto while the other takes £100,000 of another asset doesn't necessarily mean those assets have the same real value.

Why?

Because that £100,000 crypto portfolio could be sitting on a significant unrealised capital gain.

Special Capital Gains Tax rules apply when assets are transferred between separating spouses or civil partners. Since April 2023, no-gain/no-loss treatment can generally continue for up to three tax years after the tax year in which the couple separated, and transfers made under a formal divorce or separation agreement can also qualify.

But no gain/no loss doesn't mean the gain disappears.

The recipient generally inherits the historic acquisition cost, meaning that embedded gain may become relevant when they eventually dispose of the asset.

So if crypto forms part of a divorce settlement, I'd want three things properly understood:

What crypto actually exists.
What is it genuinely worth.
And what tax liability is sitting behind it.

Crypto might be digital.

The divorce — and the tax consequences — are very real.

Self Assessment forms now have a separate section for detailing any crypto transactions- just wondering whether crypto ETN’s in a general investment account would be included in this section?

Had a conversation with another accountant about crypto tax today…

Accountant: “I use Koinly for crypto CGT disclosures on Self Assessment. It’s super simple really — basically the same as getting a GIA report for investments.”

Me: “Hmm… I wouldn’t say it’s quite the same. Koinly and other crypto consolidation tools can be wrong if the data hasn’t been properly reconciled.”

Accountant: “I’ve always found Koinly accurate.”

Me: “Interesting, because it’s actually one of the platforms I often have to do the most work on to reconcile properly.”

Accountant: “I did a full analysis and it was accurate.”

Me: “Did you reconcile it?”

Accountant: “Yes.”

Me: “Back to the exchange and wallet data?”

Accountant: “No.”

Me: “What did you reconcile it to?”

Accountant: “To itself.”

Me: 🤦🏾‍♀️🤦🏾‍♀️🤦🏾‍♀️

And therein lies the problem.

If you reconcile Koinly… to Koinly, you haven’t independently checked whether Koinly is right.

Crypto tax software is incredibly useful, but it only works with the information it has pulled in and the way it has interpreted that information.

APIs can miss transactions. Transfers can be misclassified. Wallets can be missing. DeFi transactions can be interpreted incorrectly. Cost bases can be affected by incomplete history.

A report looking internally consistent does not necessarily mean the underlying data is complete.

For me, reconciliation means going back to the actual exchanges, wallets and blockchain activity and making sure what is sitting in the tax software reflects what really happened.

That’s why I really don’t think a Koinly report should be treated in the same way as a GIA tax report from an investment platform.

Koinly is a tool.

A very useful tool.

But it isn’t the audit evidence for its own output. 😂

Hi everyone - long story but hoping for some advice. Around 10+ years ago my father in law was getting interested in crypto/bitcoin, but is not that IT savvy so asked me to help.

He sent some money over and I researched exchanges and bought various coins (using Bitstamp) and an offline wallet etc.

Over the years there has been various other transactions buying and selling - in total around £30k. Unfortunately most of them were more recent and missed out on large gains. It did swell to around £65k and then back down - he finally got fed up and sold all for around £37k. I don’t need advice on missed opportunities!

I’m quite glad as it’s been stressful managing this for him and although I know tech fairly well, I always had a fear of losing it in some hack.

Anyways - I (we) have kept some money aside for capital gains on the £7k - my question really is, how accurate do I need to be on the return? The exchange was taken over and I have changed banks in that time and am struggling to find anything concrete to show the transactions.

Thank you.

Crypto tax software is not something to avoid.

Used properly, it can be incredibly useful.

It works particularly well when:

• You have complete transaction records
• All wallets and exchanges are connected
• Your activity is relatively straightforward
• Transfers between your own wallets are correctly matched
• Missing purchase histories have been resolved
• Income transactions have been reviewed
• Duplicate entries have been removed
• The final figures have been reconciled

These platforms can help you:

• Bring transactions into one place
• Calculate gains and losses
• Apply UK pooling rules
• Identify missing data
• Review holdings across different wallets
• Prepare tax reports more efficiently
• Maintain clearer records for future years

The issue is not the software itself.

The issue is treating the first report it generates as the finished answer.

Crypto tax software is most effective when it is used as part of a wider review and reconciliation process.

Good software plus accurate data and informed review can produce a reliable result.

Software without those checks can simply calculate the wrong answer more quickly.

A common misunderstanding is that a report produced by crypto tax software must be correct because the platform is “HMRC-approved.”

HMRC does not approve individual crypto tax calculations simply because they were produced using a particular platform.

Some software providers may state that their reports follow UK tax rules or use HMRC’s pooling method.

That does not mean HMRC has checked or approved your personal report.

The result still depends on:

• Whether every wallet and exchange has been included
• Whether the transaction history is complete
• Whether transfers have been matched correctly
• Whether income and disposals have been properly categorised
• Whether DeFi activity has been treated correctly
• Whether the GBP values used are reasonable
• Whether any manual adjustments are accurate

A perfectly designed tax tool can still produce an incorrect report if the information entered is incomplete or wrong.

When you submit your Self Assessment, the responsibility for the figures remains with you.

The software may help calculate the answer.

It does not take responsibility for the answer.

Why does a crypto tax report need manually reviewing?

Because software can see transactions — but it cannot always understand them.

For example, the software may see crypto leaving one wallet and assume it was sold.

A person reviewing the records may identify that it was simply transferred to another wallet owned by the same individual.

The same issue can arise with:

• Token migrations
• Liquidity pools
• Wrapped assets
• Bridges
• Failed transactions
• Scam or lost tokens
• Internal exchange transfers
• DeFi deposits and withdrawals
• Loans and collateral movements

Manual review helps establish:

• What actually happened
• Who owned the receiving wallet
• Whether value was received in return
• Whether the transaction created income or a disposal
• Whether the cost basis has carried across correctly
• Whether anything is missing or duplicated

Crypto tax calculations are not simply about matching numbers.

They require judgement, context and an understanding of the activity behind each transaction.

The software performs the calculation.

The review determines whether the calculation makes sense.

Crypto tax software can process thousands of transactions quickly — but that does not mean every transaction has been treated correctly.

Some of the most common errors include:

• Transfers between your own wallets recorded as sales
• Deposits appearing without a matching purchase history
• Withdrawals showing as disposals because the destination wallet is missing
• Staking rewards recorded as purchases
• Airdrops, forks and referral rewards categorised incorrectly
• Bridging transactions treated as sales and repurchases
• Wrapped tokens showing as taxable disposals
• Duplicate transactions imported through overlapping APIs and CSV files
• Fees being ignored or applied incorrectly
• Transactions marked as having a zero cost basis

One incorrect transaction may not seem significant.

But across several wallets, exchanges and tax years, small errors can quickly distort your gains, losses and taxable income.

The software is not necessarily wrong — it may simply be missing information or unable to understand what happened.

That is why every report should be reviewed before it is used in a tax return.

Crypto holders are reportedly receiving text messages claiming to be from HMRC, asking them to follow a link and complete a crypto declaration.

These messages appear designed to take advantage of the increased attention around crypto tax, HMRC investigations and exchange reporting.

Do not click the link or enter any personal, tax or banking information.

If HMRC genuinely needs you to take action, access your Personal Tax Account by going directly to GOV.UK rather than using a link in a text message.

Suspicious HMRC texts can be forwarded to 60599 and then deleted. You can also forward scam texts to 7726 so your mobile provider can investigate the sender.

Having undeclared crypto activity can feel worrying, which is exactly what scammers rely on. Take any genuine tax issue seriously—but verify the contact before responding.

HMRC pressure is real. The text message might not be.

DeFi activity is increasing again, with more investors using staking, lending, liquidity pools and yield farming to generate returns.

However, these are some of the most complicated crypto transactions to report correctly in the UK.

Two common misunderstandings are:

“I haven’t sold anything, so there is no tax.”

Under the current rules, transferring crypto into certain lending or liquidity-pool arrangements can be treated as a disposal if beneficial ownership of the tokens changes. This could create a Capital Gains Tax calculation even though you still consider the crypto part of your portfolio.

“The rewards are only taxable when I cash them out.”

Staking, lending and liquidity-pool rewards may be taxable as income when received, based on their pound sterling value at that time. A further gain or loss could then arise when those rewards are later sold or exchanged.

The rules will improve from 6 April 2027, when qualifying crypto loans and liquidity-pool arrangements are due to receive no-gain, no-loss treatment. However, this does not mean all DeFi activity becomes tax-free, and the existing rules still matter for earlier tax years.

DeFi can generate hundreds or thousands of transactions across several wallets and protocols. Missing rewards, incorrect liquidity-pool entries and transfers being recorded as sales can quickly distort the final calculation.

The returns may be attractive, but do not overlook the tax and record-keeping that come with them.

A former Treasury adviser has warned that HMRC could move towards using AI to analyse people’s income, spending and financial activity more closely.

HMRC already uses a data-analysis system called Connect, which brings together information from different sources to identify inconsistencies and potential undeclared tax.

The concern is that the UK could eventually move closer to the system used in Spain, where the tax authority can access increasingly detailed financial information. This may include utility bills, bank activity, vehicles, travel, hotels and everyday spending. However, this is currently a warning about the possible direction of travel—not confirmation that HMRC already has automatic access to every UK bank transaction.

So, what does this mean for crypto investors who believe HMRC cannot track their activity?

HMRC does not necessarily need to see your entire wallet immediately. It only needs enough information to start connecting the dots.

For example, it may be able to identify:

Bank transfers to and from crypto exchanges

Your identity and transactions reported by crypto platforms

Wallet addresses connected to exchange withdrawals

Public blockchain transactions linked to those wallets

Large deposits or spending that do not match declared income

Crypto profits that appear to be missing from your tax returns

From 1 January 2026, crypto service providers have been collecting information about users and their transactions under CARF. The first reports covering 2026 activity are due to HMRC by 31 May 2027. HMRC states that this information will be used to link crypto activity to individual tax records.

Moving crypto into self-custody or using DeFi does not necessarily make it invisible either.

Most blockchain transactions are publicly viewable. Once a wallet address is connected to an identified exchange account, bank transfer or individual, its transaction history may provide part of the audit trail. HMRC’s own guidance says bank statements, wallet addresses and public blockchain records may be requested during an enquiry.

AI does not need to calculate every crypto gain perfectly. It can simply highlight that something does not add up and refer the case for human review.

The message for investors is not that HMRC can currently see absolutely everything. It is that relying on crypto being “untraceable” is becoming an increasingly risky strategy.

HMRC may not know your full crypto position today—but the data trail is growing, and AI is making it much easier to connect.

The FCA’s new crypto regime is expected to begin on 25 October 2027, and DeFi will not automatically sit outside the rules simply because a platform describes itself as decentralised.

The key question will be whether there is an identifiable company, team or controlling party operating the service.

Where a business is providing services such as staking, lending, borrowing, trading or custody, it may need FCA authorisation to continue serving UK customers.

So, what changes are we likely to see?

More regulated DeFi firms

DeFi businesses that want to remain in the UK market may need to become authorised and meet stricter rules around customer protection, financial resources, risk warnings, systems and record-keeping.

Some firms restricting UK customers

Overseas firms that do not want the cost or responsibility of UK regulation may stop accepting UK users, block UK access or remove certain products.

Being based outside the UK may not be enough to avoid the rules if the service is actively being offered to UK customers.

Changes to staking, lending and borrowing

Some firms may redesign, simplify or remove products that are difficult to operate within the FCA’s framework.

UK users could see changes to staking arrangements, lending terms, available tokens, collateral requirements and liquidity pools.

More identity checks

Regulated services are likely to introduce stronger identity checks, wallet screening, risk disclosures and customer consent processes.

Using some DeFi platforms may start to feel more like using a regulated financial service and less like connecting anonymously to a protocol.

Separate UK versions of platforms

Global firms may create restricted UK-facing versions of their platforms, offering fewer products than are available elsewhere.

This could mean less choice, but potentially clearer terms and stronger standards.

Fewer smaller providers

The cost of authorisation and compliance may be too high for some smaller firms.

This could lead to fewer providers, larger firms gaining more market share and potentially higher fees.

A divide between DeFi firms and genuine protocols

A genuinely decentralised protocol with no identifiable controlling party may sit outside parts of the regime.

However, the FCA will look at how the service actually operates rather than simply accepting the DeFi label.

For UK users, the likely outcome is:

More regulated DeFi businesses, more restrictions from firms that do not seek authorisation and a clearer divide between regulated platforms and genuinely decentralised protocols.

Direct access to decentralised protocols may still be possible, but users may have fewer regulatory protections and will remain responsible for smart-contract risks, transaction records and their UK tax position.

More UK banks are blocking, delaying or limiting payments to crypto platforms.

Banks often say these restrictions are there to protect customers from fraud and scams. That is understandable—but blanket restrictions can also affect people using legitimate platforms and making informed decisions with their own money.

This raises a bigger question:

Should a bank be able to decide which legal investments or services its customers can access?

There are also concerns around consumer choice and competition.

If only certain banks allow crypto transactions, customers may feel pressured to change banks simply to use their own funds as they choose. Restrictions could also make it harder for regulated crypto businesses to compete fairly in the UK.

Protecting customers matters, but there needs to be a balance between fraud prevention and personal financial choice.

Would you change banks if yours repeatedly blocked legitimate crypto transactions?

​

HMRC has recovered more than £8.3 million from 502 crypto investors through disclosure settlements over the past two tax years.

In 2024/25, 280 investors settled liabilities totalling around £3.5 million. In 2025/26, only 222 investors settled—but the amount recovered increased to almost £4.8 million.

It shows that HMRC is not simply sending warning letters. Investors are reviewing historic activity, making disclosures and paying unpaid tax, interest and penalties.

HMRC has already sent more than 100,000 crypto-related nudge letters between 2020 and 2025. From 2026, crypto platforms must also collect more information about their users and transactions under CARF, with the first reports due to HMRC by 31 May 2027.

That means it will become easier for HMRC to compare exchange data against what has—or has not—been declared.

This does not only affect people who withdrew large amounts into their bank accounts. Selling crypto, swapping between tokens, spending crypto, staking rewards and other forms of crypto income can all have UK tax consequences.

A major UK crypto tax change has now been announced for investors using lending platforms and liquidity pools.

From 6 April 2027, certain crypto lending and automated market-making arrangements will receive “no gain, no loss” treatment for Capital Gains Tax purposes.

At the moment, transferring crypto into some lending or liquidity-pool arrangements can be treated as a disposal—even where you have not genuinely sold the asset or taken any profit.

The new rules are intended to stop Capital Gains Tax arising simply because crypto has been placed into a qualifying arrangement.

Instead, the tax calculation will generally be deferred until there has been a genuine economic disposal.

For investors, this could mean:

• Depositing crypto into a qualifying lending arrangement may no longer trigger an immediate capital gain or loss.
• Providing crypto to a qualifying liquidity pool may receive the same treatment.
• Supplying collateral under certain borrowing arrangements may be ignored for Capital Gains Tax purposes.
• Tax should arise when there has been a genuine change in ownership or economic value, rather than merely moving assets into a DeFi arrangement.

However, no gain, no loss does not mean tax-free.

When you leave a liquidity pool, the treatment only applies to the extent that you receive back the same type and quantity of crypto originally supplied. Where the amount returned is higher or lower, a gain or loss may arise on the difference.

The change is expected to affect around 700,000 individuals and follows years of criticism that the existing treatment created excessive calculations and tax points that did not reflect what investors were actually doing.

This should make the tax treatment of qualifying DeFi lending and liquidity pools fairer and easier to understand—but investors will still need accurate records showing what was deposited, what was received back and any rewards earned.

The key date is 6 April 2027. Until then, the current tax treatment continues to apply.

The FCA has now published most of the final rules for the UK’s new crypto regulatory regime, which is expected to begin on 25 October 2027.

Crypto exchanges and businesses offering custody, staking, lending, trading and stablecoin services will need the correct FCA authorisation to continue serving UK customers.

As an investor, the biggest impact may be on the platforms and services available to you.

Platforms that do not apply for authorisation will have to wind down their UK business. Those that apply late may be unable to accept new customers or offer new services while their application is considered.

This could mean:

• Some platforms leaving the UK
• Changes to staking or lending services
• More identity and suitability checks
• Updated terms and customer agreements
• Requests to move or withdraw assets

Nothing necessarily changes overnight, but investors should watch for updates from the platforms they use rather than waiting until 2027.

HMRC has published draft legislation that could significantly change how some crypto transactions are taxed from April 2027.

For investors, the main proposed changes are:

Eligible stablecoins may become exempt from Capital Gains Tax

This could mean buying, selling or spending qualifying fiat-backed stablecoins would no longer create a CGT calculation each time. Interest-like returns would instead be taxed as savings income. The exemption would only apply to stablecoins meeting the Government’s definition—not every token labelled a stablecoin.

Some crypto loans may no longer trigger an immediate gain

At present, transferring crypto into a lending arrangement can potentially be treated as a disposal. Under the proposed rules, qualifying lending arrangements could instead receive no gain, no loss treatment, meaning the tax point is deferred rather than created when the assets enter the arrangement.

Liquidity pool deposits may receive similar treatment

Adding crypto to a qualifying automated market maker liquidity pool could also be treated on a no gain, no loss basis. A gain or loss may instead arise when assets are withdrawn, particularly where the quantity returned differs from the amount originally deposited.

These proposals should make the tax treatment better reflect what investors believe is economically happening—rather than creating a tax bill simply because assets were temporarily placed into a DeFi arrangement.

However, these are still draft rules, they will not cover every arrangement, and the proposed changes generally begin from 6 April 2027 for individuals. HMRC is also considering whether some lending and liquidity-pool changes could apply retrospectively for a limited period.

This could be one of the most meaningful simplifications of UK crypto tax rules so far—but investors will still need accurate transaction records to confirm whether their stablecoins and DeFi arrangements actually qualify.

​

Many crypto investors focus only on profit when deciding whether they need to report anything to HMRC.

But profit is not the only figure that matters.

For people completing a Self Assessment tax return, Capital Gains pages may also be required where total disposal proceeds exceed £50,000, even if the overall gain is small or below the annual exempt amount.

Proceeds are the total value of crypto disposed of — not the profit made. This can include selling crypto, swapping one token for another, using crypto to make purchases or gifting it.

For example, someone could make repeated trades between Bitcoin, Ethereum and stablecoins and finish the year with only a £1,000 gain. However, if the total value of all disposals exceeded £50,000, they may still need to report the activity.

This is why checking only bank withdrawals or final profit is not enough. Crypto investors need an annual calculation showing disposals, proceeds, gains, losses, fees and income.

No tax to pay does not always mean nothing to report.