UK Defers Capital Gains Tax on DeFi Lending and Liquidity Pool Deposits Until April 2027

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According to HMRC, the UK's HM Revenue & Customs announced on Monday that depositing cryptoassets into DeFi lending protocols and liquidity pools will be treated as "no gain, no loss," deferring capital gains tax until an actual economic disposal. The policy, set out in a paper published July 14, takes effect from April 6, 2027, and will amend the Taxation of Chargeable Gains Act 1992. HMRC estimates the change will affect around 700,000 individuals and trustees who use crypto loans and liquidity pools. The measure addresses concerns raised since 2022, when HMRC's guidance treated such deposits as taxable disposals, creating disproportionate administrative burdens. Aave founder Stani Kulechov called the approach "the right direction," noting that industry feedback shaped the outcome.
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