Knightbridge Tax Ltd

🚨 Huge UK Bitcoin & crypto tax update. 🚨 HMRC has published draft legislation that could change how Bitcoin & cryptoasset loans, liquidity pools and stablecoins are taxed from April 2027. These aren't law yet, but they're significant and worth watching. The two biggest proposals are: 📌 Cryptoasset loans & liquidity pools 📌 Tax treatment of stablecoins These have been debated and discussed for years because the current rules often don't reflect what people are actually doing in DeFi. Today, many DeFi transactions can trigger Capital Gains Tax even when you've not really "cashed out." For example: • Lending crypto • Providing liquidity • Moving between certain protocols The proposals aim to better align tax with the economic reality of these transactions. One proposal is a form of "no gain, no loss" treatment for certain qualifying cryptoasset loans and liquidity pool transactions. That could mean tax is deferred until a later disposal, rather than triggered when you enter the arrangement. The detail will matter. The Government is also reviewing how stablecoins should be taxed. At the moment, swapping BTC ➜ USDT or USDC is generally a disposal for CGT purposes. They're asking whether that treatment still makes sense as stablecoins become more widely used. A word of caution... These are draft measures, not final legislation. They may change before implementation, and they'll only apply from the date Parliament ultimately approves them. So don't change your reporting based on headlines alone. If you're using: • Bitcoin-backed loans • Aave • Compound • Liquidity pools • Stablecoins ...this is one of the biggest UK Bitcoin & crypto tax developments to follow over the next 12 months. I'll be reading through the draft legislation in detail and posting practical examples of what it could mean for UK Bitcoin and crypto holders. If there are changes that matter, I'll break them down in plain English. For anyone wanting to read the proposals themselves: 📄 Cryptoasset loans & liquidity pools: gov.uk/government/con…⁠ 📄 Stablecoin taxation: gov.uk/government/cal…⁠ Credit for my co contributors: @freddienew @danhowitt @CryptoTaxJme @CryptoUKAssoc @CryptaxUK @KnightbridgeTax @LouiseL57813551 @BenL33t And any others ive missed or couldn't find 😁

🚨Major crypto tax changes proposed🚨 HMRC has published draft legislation covering: ✅ Crypto loans and liquidity pools ✅ Stablecoins becoming exempt from Capital Gains Tax in certain cases ✅ Expanded HMRC information powers and access to digital records This could mean borrowing against Bitcoin without the collateral transfer being treated as a disposal, provided the qualifying conditions are met. The rules are still draft and open to consultation. (GOV.UK) Crypto loans: gov.uk/government/pub… Stablecoin taxation: gov.uk/government/pub… HMRC information powers: gov.uk/government/pub… For UK crypto tax advice: 📧 hello@mynaL2.co.uk 🌐 MynaL2.co.uk #CryptoTax #BitcoinTax #HMRC #Bitcoin #Stablecoins #DeFi #CapitalGainsTax #UKTax #CryptoLoans #LiquidityPools

HMRC has published draft legislation covering cryptoasset loans and liquidity pools, eligible stablecoins, and its information-gathering powers. We have been following these proposals closely, including through Laura’s involvement in industry discussions and HMRC roundtables. These proposals will significantly affect DeFi users, stablecoin holders and the professionals advising them. In our latest article, we provide an initial overview of the proposed changes and will add more in depth blog once fully digested the published material. knightbridgetax.com/blog/hmrc-draf…

Bitcoin Policy UK is joining forces with @AntidoteBTC, London’s new home for Bitcoin builders. This partnership brings policy and innovation together, linking those shaping regulation with those building on Bitcoin. The UK has the talent, energy and vision to lead in Bitcoin. Let’s make it happen.

🚨 Exit Tax on Crypto?! 🚨 🔍 What’s going on: reports say the Treasury is looking at a “settling-up charge” on unrealised gains of assets for high-net-worth individuals who emigrate. ⚠️ Why it matters for crypto/accountancy: if you’re advising clients or relocating, this could spin up new exit/gain rules, watch the planning window. 💡 What you should do: stay tuned to the Budget announcements, check whether the tax applies to crypto, shares, trusts, so correct planning could save a fortune. 🚨 Cliff-hanger: Will this move push more wealth offshore OR lock assets in the UK? 👉 Follow for updates and more crypto tax commentary. #CryptoTax #UKBudget #RachelReeves #ExitTax #WealthPlanning #HighNetWorth

The UK’s complex and outdated crypto and regulatory framework is pushing talent and innovation abroad, leaving the country behind. Thank you to @C_Grigera and the @BeInCrypto team for raising awareness and driving this important discussion. You can listen to the full episode below.

“If I put $100 in Bitcoin in 2010 I’d have $2.8B now.” No. If you bought $100 of Bitcoin in 2010 and watched it go to: $1k → $100k → $1.7M and did nothing Then watched $1.7M go to $170k and still did nothing Then watched $170k go to $110M and still did nothing Then watched $110M wither to $18M and still did nothing Then watched $18M surge to $390M and still did nothing Then watched $390M deteriorate to $85M Then watched $85M climb to $1.6B and still did nothing Then watched $1.6B shrink to $390M and still did nothing Then watched $390M surge to $2.8B and then for some reason finally decided to do something… Then yes, $100 in 2010 would be worth $2.8B today.

FROM NUDGE TO PUSH; HMRC ARE COMING knightbridgetax.com/f/from-nudge-t…

New episode: In this episode of ‘On the Record’, we share an audio version of the full response from Bitcoin Policy UK to the Financial Conduct Authority’s Discussion Paper DP25/1, which explores the future regulation of cryptoasset activities in the UK. fountain.fm/episode/c5m1WB…

As tweeted a few days ago. This will affect those who are offering crypto services in terms of compliance. This will mean retail will need to offer more data for any firms caught up in this ie in the uk. I doubt many will now incorporate in the uk. And those who are in the uk won’t use uk entities. CEX’s will suffer. The UK will suffer. But only short term IMO.

🚨 Big win for #Bitcoin in Australia! A court has ruled Bitcoin is money, not a taxable asset - potentially unlocking $640M in tax refunds. This isn't just legal nuance. It’s recognition of Bitcoin’s legitimacy as real money. The tide is turning. 🌊 source: cointelegraph.com/news/australia… #bitcoinnews

It's happening! We have a prototype for the desk version of the statue of Satoshi Nakamoto that you all have been asking for! (This is going to be approx 1.5kg of stainless steel) 😌 In the meanwhile for art collectors we do have a bigger home version limited edition available on our website (11kg of stainelss steel): 👇👇👇 satoshigallery.com/shop/product.h…

🚨NEW CRYPTOASSET BOX ON UK SELF ASSESSMENT TAX RETURNS Read the full article here 👉 knightbridgetax.com/f/new-cryptoas…

UK businesses are starting to consider adding Bitcoin to their balance sheets. @Recap_io has published a step-by-step guide showing how to do it, covering everything from custody and accounting to tax and strategy. bitcoinpolicy.uk/blog-1/f/build…

New partner 🥳 We're thrilled to welcome @bitcoinpolicyuk — a not-for-profit organisation committed to positioning the UK as a global leader in Bitcoin adoption and mining — to the CryptoUK community. Around the world, Bitcoin’s role in financial resilience, innovation, and national reserves is growing. The UK now faces a choice: lead in responsible Bitcoin adoption or fall behind as other nations take decisive steps. Susie Violet Ward, CEO & Co-Founder, Bitcoin Policy UK, commented: "The UK has a unique opportunity to shape its Bitcoin policy. While countries like the US explore national reserves and industrial-scale mining, we in the UK must also leverage Bitcoin for financial inclusion, innovation, and economic growth. By collaborating with policymakers and industry, we can set a global benchmark for responsible adoption." Freddie New, Chief Policy Officer & Co-Founder, Bitcoin Policy UK, added: "Bitcoin is more than a financial asset—it’s a technological and economic force. Smart regulation can unlock investment, create jobs, and integrate Bitcoin mining into the UK’s renewable energy strategy. A clear, innovation-friendly policy framework will keep us competitive in the global digital economy." For over 15 years, Bitcoin has led the way in decentralised finance and digital asset innovation, laying the foundation for a rapidly evolving financial system. As Bitcoin Policy UK highlights, mining can support the UK’s sustainability goals by utilising surplus renewable energy, reducing waste, and helping to stabilise electricity grids, while at the same time potentially reducing costs for end consumers, as curtailment payments could be paid instead by miners. This is just one example of Bitcoin’s broader utility, which—alongside the wider crypto and digital asset ecosystem—is driving innovation critical to the UK’s global competitiveness. Su Carpenter, Executive Director, CryptoUK, commented: "Bitcoin’s role in the UK economy is increasingly strategic. Our partnership with Bitcoin Policy UK highlights the need for policies that support its long-term potential. At CryptoUK, we continue advocating for a regulatory framework that enables growth across the entire crypto and digital asset ecosystem, ensuring the UK remains at the forefront of digital finance and the rapidly evolving global digital economy." CryptoUK brings together industry leaders and innovators, including blockchains, cryptocurrency exchanges, institutional investors, payment providers, digital asset custodians, professional services firms, and more. As members of CryptoUK they gain access to: ✅ Expert-led working groups ✅ Exclusive events and networking ✅ Opportunities to engage with regulators and policymakers No matter the size of your organisation, we offer membership opportunities tailored to your needs. Join us today in shaping the UK’s crypto and digital asset landscape 👉cryptouk.io

📢 Update on DeFi Tax Reform We've received an official response from HM Treasury following our joint letter with industry leaders pushing for fair tax treatment of DeFi lending and staking. Here's what you need to know 🧵👇

🚨Times running out to claim 2021 capital losses, take action now 👉 knightbridgetax.com/f/5-april-2025…

STABLECOINS IN THE UK: THE TAX CONSEQUENCES… Read the full article here 👉 knightbridgetax.com/f/stablecoins-……

Everyone talks about Bitcoin the asset. Hardly anyone talks about the power of the network. @jakob_btc from @HermeticaFi gets it 😌