BPUK has submitted its response to HMRC’s consultation on the tax treatment of Bitcoin lending and liquidity pools. The proposed no gain, no loss treatment is sensible. Lending Bitcoin and later receiving it back should not be treated as a taxable disposal.
Two things we pushed back on: the “low risk of loss” test doesn't account for BTC's price volatility, and the drafting still doesn't separate native Bitcoin from wrapped BTC, which carries custodial and bridge risk that self-custodied Bitcoin doesn't.
Full submission on the Bitcoin Policy UK website.
https://bitcoinpolicy.uk/blog-1/f/bitcoin-lending-tax-consultation-what-we-told-hmrc
Susie (npub1hwg…03sg)
bitcoinpolicyuk / Bitcoin Policy UK
npub1z7…pd4yx
2026-09-06 09:28:31 UTC
Author Public Key
npub1z74dj8y9xgq3lmz3eyvarzmwxwllhuzewz2exwz5j57tf6jssmss9pd4yxPublished at
2026-09-06 09:28:31 UTCEvent JSON
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"content": "BPUK has submitted its response to HMRC’s consultation on the tax treatment of Bitcoin lending and liquidity pools. The proposed no gain, no loss treatment is sensible. Lending Bitcoin and later receiving it back should not be treated as a taxable disposal.\n\nTwo things we pushed back on: the “low risk of loss” test doesn't account for BTC's price volatility, and the drafting still doesn't separate native Bitcoin from wrapped BTC, which carries custodial and bridge risk that self-custodied Bitcoin doesn't.\n\nFull submission on the Bitcoin Policy UK website.\n\nhttps://bitcoinpolicy.uk/blog-1/f/bitcoin-lending-tax-consultation-what-we-told-hmrc\n\nnostr:npub1hwgw0uznr49t4gullpgfz4m5xnakl5a0l88m3k382xv7ys0tfmlsd503sg ",
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