Property (Digital Assets etc) bill

The marvelously named Lord Ponsonby of Shulbrede introduced the Property (Digital Assets etc) bill into UK Parliament yesterday.

It is a short bill that confirms that a cryptoasset can be personal property.

Huh?

Well, if one takes the classical legal view personal property can only be a ‘thing’ (a chose in possession) or a ‘right’ (a chose in action).

For reasons I won’t bore you with, crypto, like other intangibles, doesn’t fit nicely into either of these two buckets when viewed strictly.

However, as the law is not set in stone, the international courts have been coming to this conclusion under their own steam. Further, the bill builds on the excellent work of the Law Commission in this area.

So, although it is welcome, it is unlikely to lead to any massive or immediate change.

But why does it matter, anyway?

Well, for example, something would need to be personal property for, say, it to be capable of being subject to a trust… or being comprised in one’s estate for IHT purposes.

The bill has been introduced under the special whizzy procedure where Law Commission reports are introduced into the Lords…

…Hence the involvement of his Lordship Ponsonby*.

*Ponsonby was the name of Reginald Perrin’s cat. Hence Lord Feline in the pic above. Now, there’s an obscure cultural reference of ever there was one. (I didn’t get to where I am today without knowing an obscure cultural reference when I see one.)