UK Proposes ‘No Gain, No Loss’ Tax Rule for DeFi in 'Major Win' for Users

UK Proposes ‘No Gain, No Loss’ Tax Rule for DeFi in 'Major Win' for Users

The proposal, with input from major industry players, aims to bring tax rules in line with how DeFi works, reducing outcomes that don't reflect reality.

UK DeFi Tax Update: HMRC Adopts ‘No Gain, No Loss’ Approach For Crypto Loans

UK HMRC advances DeFi tax rules using a ‘no gain, no loss’ (NGNL) approach to simplify reporting. Proposed rules cover crypto loans, staking, and automated market makers, aiming to reduce administrative burden. Stakeholders emphasize inclusion of multi-token liquidity pools and clear guidance for evolving DeFi models. HMRC has taken a significant step in shaping the taxation of cryptoasset loans and liquidity pool arrangements in the UK. The con…

UK Takes Major Step Toward DeFi Tax Reform With New Proposal

On November 26, 2025, HM Revenue and Customs proposed a new "no gain, no loss" tax structure that would affect decentralized financial activities, including lending and liquidity provision, to eliminate quick capital gains tax triggers. Before, putting tokens into DeFi protocols was considered a taxable disposal, which meant that users had to pay rates of up to 32 percent even if they didn't make any real gains.  This made it difficult for peopl…

UK New DeFi Tax Push Brings DeFi Apps Like Best Wallet Token Into the Spotlight

Quick Facts: • The UK’s move toward ‘no gain, no loss’ taxation for DeFi lending and liquidity pools could normalize on‑chain yield strategies and …

UK: Taxation of DeFi Involving Lending and Staking

HMRC has published its consultation outcome in the UK regarding the taxation of DeFi activities related to lending and staking. A particularly interesting conclusion is that when users deposit assets into Aave, the deposit itself is not treated as a disposal for capital gains… — Stani.eth (@StaniKulechov) November 27, 2025 1. Executive summary Cryptoassets, and the technology underpinning them, have developed rapidly over recent years and are no…

UK Keeps 'No Gain, No Loss' Tax Policy on DeFi Transactions—What It Means for Investors

UK Proposes DeFi-Friendly Tax Framework to Ease Crypto Lending and Liquidity Pool Activities The United Kingdom is set to introduce a novel taxation approach aimed at simplifying rules for decentralized finance (DeFi) participants. The proposed framework emphasizes deferred capital gains taxes on activities like crypto lending and liquidity pool participation, aligning tax obligations more closely with the actual economic activities rather than …