On 13 July 2026, His Majesty's Revenue and Customs (HMRC) published draft legislation on crypto loans and liquidity pools, taxation of stablecoins and reforming civil tax information and inspection powers. This paper sets out UK Finance’s response, including recommendations developed with members across our digital assets and money and tax streams.

The draft legislation will reshape how stablecoin payments, loans and liquidity pools are taxed, and how HMRC can request information from businesses. As stablecoin returns will be treated as interest and brought within accounting-based rules, the changes will affect withholding tax, treaty relief, reporting and anti-avoidance provisions well beyond the core regime.

Members support HMRC's plan to make the tax treatment of stablecoins simpler and better suited to their use for payments. However, members stress that clear guidance must be available before the new rules take effect. Consumers and businesses need certainty which stablecoins qualify, how the changeover will work and how returns should be taxed and reported, including across borders.