Hi again, so I’ve reviewed Ledn’s Custodied Loans to see if they also risk CGT events.

Ledn have had these on offer for a while now, usually at an extra 1% premium to their Standard Loans.

However now the Custodied Loan is the only one they offer, and the Loan Agreement language and structure appears to be more CGT friendly (from what I can deduce using ChatGPT as a research assistant).

Here’s what I’ve found:

Under the Custodied Loan agreement, the borrower retains ownership of the Bitcoin collateral, granting

LEDN only a security interest.

Key clause (Section 4(c)(i)):

"Borrower grants to Lender a first priority security interest in and to the Collateral... The Borrower shall retain

all rights of ownership in the Collateral, subject to the Lender's security interest."

ATO Implication:

Because the borrower retains beneficial ownership, the ATO is unlikely to treat this as a CGT event. The security interest does not constitute a disposal for CGT purposes.

Hope this helps, as usual DYOR or consult a tax account (LIKE I SHOULD HAVE DONE 😅)