Starting April 6, 2027, the UK government will let investors defer capital gains tax on some crypto lending and DeFi transactions until they actually sell or exchange their assets. This change aims to make taxes simpler for crypto users, cut down on paperwork, and better match how these transactions work in real life.
HM Revenue and Customs (HMRC) said that certain crypto lending and liquidity pool transactions will use a “no gain, no loss” rule. This means moving crypto into approved lending platforms or pools usually will not cause an immediate capital gains tax bill.
Source: gov.uk
Tax will only be due when investors actually sell or exchange their assets and make a real profit or loss. HMRC said this update makes the tax rules better match how these transactions work, instead of taxing every time crypto is moved. This new approach replaces the 2022 guidance, which was found to be too complicated for people using decentralized finance protocols.
HMRC estimates that about 700,000 people and trustees in the UK could be affected by this change. Right now, capital gains tax on crypto profits is between 18% and 24%, depending on income.
The new rules will cover crypto lending deals where users get back the same type of crypto asset, and certain automated market maker (AMM) liquidity pools that meet set requirements.
HMRC in the UK is adopting new tax legislation related to crypto lending and liquidity pools.
Main take is that deposits into lending protocols will be treated as ‘no gain, no loss’ (NGNL), which effectively defers capital gains tax until an economic disposal. Also underlying…
— Stani (@StaniKulechov) July 13, 2026
Some in the crypto industry welcomed the news. Aave founder Stani Kulechov called the change a practical solution that listens to industry feedback and helps taxpayers avoid extra paperwork.
This tax change is part of the UK’s wider effort to build rules for digital assets like stablecoins and tokenized products. By making taxes simpler, the government wants to support innovation and make it easier for both individuals and companies to follow the rules in the growing crypto market.
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