# REPOS ## What is a REPOS? A REPOS is a secured loan related to traditional shares or securities. An owner of shares or securities may sell them to a lender on the understanding that he will repurchase them at an agreed price at some future point. There are now providers offering REPOS with cryptoassets. ## Tax Treatment of REPOS {% hint style="danger" %} HMRC are clear in their guidance at [CRYPTO61610](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto61610) that it is unlikely that the REPOs legislation applies to cryptoassets. {% endhint %} > HMRC state: > > 'It will be a question of fact whether the tokens being loaned and borrowed or staked (as applicable) can satisfy the definition of a security for the purposes of sections 263A or 263B TCGA 1992. Generally tokens will not be securities for this purpose.' The REPOS legislation (applying to shares and securities, not cryptoassets) serves to ignore the sale and re-purchase of the shares for capital gains tax purposes. As HMRC do not expect cryptoassets to qualify as a security and benefit from this generous CGT exemption; they are expecting REPOS involving cryptoassets to realise a capital gain upon disposing of the cryptoassets and there will be a CGT re-acquisition when they are bought back (on the basis it is expected that [beneficial ownership](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/is-beneficial-ownership-bo-transferred.md) of the tokens will transfer to another party). Therefore the tax position for cryptoasset REPOS is covered by the guidance at [Step 3](/uk-tax-guide-for-individuals/cryptocurrency-tax/new-hmrc-defi-guidance/consider-the-tax-treatment.md) within the New HMRC DeFi Guidance section. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.recap.io/uk-tax-guide-for-individuals/transaction-types/repos.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.