Overview
- HM Revenue & Customs announced the change on Monday, July 13, 2026, and said it will take effect on April 6, 2027 for the 2027–2028 tax year.
- Under the new approach, depositing crypto into specified lending arrangements or multi-token liquidity pools will be treated as 'no gain, no loss', so capital gains tax is deferred until an economic disposal occurs.
- The guidance covers single-token loans, borrowing arrangements and automated market-maker liquidity pools and treats collateral posted for borrowing as disregarded for capital gains tax.
- Tokens earned as rewards or yield will continue to be taxed as miscellaneous income in the year they are received, so users still face a tax hit on earnings even if principal is tax-neutral.
- HMRC said the move aims to cut paperwork and align tax with how DeFi actually works; industry groups say it could boost participation and change demand for assets used in lending and pools, with market-watchers tracking wider effects on tokens such as XRP.