UK Government Defers Capital Gains on Certain Crypto with ‘No Gain, No Loss’ Approach
The change will defer capital gains tax on qualifying crypto lending and liquidity pool transactions and is expected to affect about 700,000 people, HMRC said.
- On Monday, HM Revenue & Customs announced that qualifying crypto lending and DeFi liquidity pool transactions will receive "no gain, no loss" treatment beginning April 6, 2027.
- Following years of industry consultation, Aave founder and CEO Stani Kulechov called the shift the "right direction," saying any alternative approach would impose "significant admin burden" on taxpayers.
- The measure, expected to impact approximately 700,000 individuals and trustees, defers Capital Gains Tax until an economic disposal occurs, aligning taxation with the underlying economic substance of these transactions.
- Britain is positioning itself as a global digital asset hub through this reform, coordinating its approach with regulatory frameworks including the European Union's MiCA.
- The Office for Budget Responsibility will review final cost estimates during a future fiscal event, though HMRC does not expect the change to significantly impact the United Kingdom's economy.
20 Articles
20 Articles
Cointelegraph
The New York LedgerUK Government Defers Capital Gains on Certain Crypto with ‘No Gain, No Loss’ Approach
Starting in April 2027, the UK’s tax authority will adopt a “no gain, no loss” approach to disposals involving crypto loans and liquidity pools, effectively deferring the country’s 18% to 24% capital gains tax.
Nemos News Network
ussanews.comUK Adopts ‘No Gain, No Loss’ Tax Treatment For Crypto Lending And Liquidity Pools
UK Adopts ‘No Gain, No Loss’ Tax Treatment For Crypto Lending And Liquidity Pools Authored by Micah Zimmerman via BitcoinMagazine.com, The United Kingdom’s HM Revenue & Customs will treat certain disposals involving cryptoasset loans and liquidity pools as “no gain, no loss,” deferring Capital Gains Tax until a user makes an economic disposal of the underlying cryptocurrency. The measure, published Monday, takes effect 6 April 2027 and applies …
Britain Is Changing How It Taxes Crypto. DeFi Users Will No Longer Face Immediate Capital Gains Bills.
The United Kingdom is overhauling the way it taxes certain cryptocurrency transactions, becoming one of the first major economies to formally recognize that lending digital assets and participating in decentralized finance liquidity pools do not always represent a meaningful change in ownership.
Coverage Details
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
