UK Delays Capital Gains Tax on DeFi Lending and Liquidity Pool Deposits

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The UK has delayed capital gains tax on DeFi lending and liquidity pool deposits, according to a government policy document. The tax authority now states that depositing crypto into liquidity pools and crypto markets will not trigger a taxable event. Investors will only pay capital gains tax when they make an actual economic disposal. The update, effective April 6, 2027, revises the Taxation of Chargeable Gains Act 1992 and will impact approximately 700,000 individuals and trustees using DeFi services.

Huo Xing Finance reports that on July 14, the UK tax authority confirmed that depositing crypto assets into DeFi lending protocols and liquidity pools will no longer be considered a taxable disposal. This means investors will not be required to pay capital gains tax until an actual economic disposal occurs. The adjustment was announced in a policy document released by the UK government and will take effect on April 6, 2027, amending the Taxation of Chargeable Gains Act 1992. This policy change will affect approximately 700,000 individuals and trust trustees using crypto lending and liquidity pool services.

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