UK: Consultation on stablecoin taxation
HMRC has proposed targeted reforms for taxation of stablecoins.
HMRC has launched a “call for evidence” seeking input on whether the current tax treatment of stablecoins is appropriate as the stablecoin market develops, and whether reform is needed to reduce administrative burdens.
Stablecoins are currently treated in the same way as other cryptoassets for all UK taxes. However, HMRC has proposed the following targeted reforms:
- Introducing a capital gains tax exemption for individuals, or alternatively, a de minimis reporting threshold for low-value transactions
- Bringing more stablecoin transactions within the loan relationship rules, including transactions when a company lends stablecoins, which currently are not treated as loans
- Aligning the tax treatment of stablecoin lending returns with those on equivalent fiat currency debt, for both individuals and companies
HMRC have also raised the interaction with the proposed “no gain, no loss” treatment for cryptoasset loans and liquidity pools (consulted on separately in November 2025) and seek views on how stablecoin reforms may sit alongside that framework.
The consultation follows the government’s Financial Services Growth and Competitiveness Strategy (July 2025) and sits alongside the regulatory framework for cryptoassets being developed by the Financial Conduct Authority (FCA) expected to take effect in late 2027.
Read an April 2026 report prepared by the KPMG member firm in the UK