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Crypto Loans
There is no HMRC guidance on cryptoasset loans, however following suggested tax treatment is based on general tax principles.
It is likely that making a loan of cryptoassets (or using them as collateral) is not a disposal of those cryptoassets for capital gains tax purposes. This is on the basis that beneficial ownership of the cryptoassets is retained throughout. At the end of the arrangement, when the loan is repaid, or when the collateral is unlocked and returned, it follows that there is no taxable event.
Any cryptoassets received as lending rewards will most likely be taxable as miscellaneous income.
Next, there are a couple of common scenarios involving cryptoasset loans with an analysis of the likely tax treatment...
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Last modified 1mo ago
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