On 13 July 2026, HMRC published a policy paper and draft legislation setting out a new tax treatment for eligible stablecoins. The proposals, which are intended for inclusion in the Finance Bill 2027, seek to align the taxation of stablecoins more closely with that of money and to simplify the rules for individuals, trustees and companies.
Broadly, an eligible stablecoin will be a cryptoasset that maintains a stable value by reference to sterling or another fiat currency, is supported by sufficient currency or other assets, and is designed to be used as a means of payment or settlement. Stablecoins will also need to be widely available and traded with sufficient frequency and volume to constitute an active market.
For individuals and trustees, disposals of eligible stablecoins will be exempt from Capital Gains Tax. Interest-like returns will instead be treated as savings income where they arise from a debt denominated in eligible stablecoins or from qualifying single cryptoasset lending arrangements. Existing holdings will be subject to transitional provisions under which eligible stablecoins held immediately before 6 April 2027 will be treated as disposed of and reacquired at market value, with any resulting gain or loss treated as arising on that date.
For companies, eligible stablecoins and certain related debts will be brought within the loan relationship regime. Stablecoins held or issued by a company will be treated as money debts, while transactions involving the lending of eligible stablecoins will be treated as transactions for the lending of money. Consequently, the Corporation Tax treatment of relevant transactions will generally follow the amounts recognised in the company’s accounts. Transitional rules will apply to assets that become loan relationships when the new regime takes effect.
The measures will apply from 6 April 2027 for individuals and trustees and, for companies, to accounting periods beginning on or after 1 April 2027. HMRC estimates that the changes will affect approximately 1.2 million individuals involved in stablecoin transactions, while the administrative impact on businesses is expected to be negligible.