UK to defer Capital Gains Tax on qualifying crypto lending and liquidity pools from 2027

ambcryptoPublicado a 2026-07-14Actualizado a 2026-07-14

Resumen

The UK government plans to defer Capital Gains Tax (CGT) on qualifying crypto asset lending and liquidity pool transactions from April 6, 2027. Under the new HMRC framework, these transactions will be treated on a "no gain, no loss" basis. This means tax will typically be deferred until the assets are economically disposed of, rather than being triggered when cryptoassets are lent or deposited. The measure aims to align tax treatment with economic substance and reduce administrative burdens. It covers single crypto asset lending/borrowing and Automated Market Making (AMM) arrangements. The policy follows years of industry consultation and is expected to affect around 700,000 individuals.

The UK government has unveiled plans to defer Capital Gains Tax [CGT] on certain crypto asset lending and liquidity pool transactions. It marks a significant change to how digital asset users are taxed.

Under a new HM Revenue & Customs [HMRC] policy paper published on July 13, qualifying cryptoasset loans and liquidity pool arrangements will generally be treated on a “no gain, no loss” [NGNL] basis.

Instead of triggering CGT when cryptoassets are lent or deposited into eligible liquidity pools, tax will typically be deferred until the assets are economically disposed of. The measure is scheduled to take effect from April 6, 2027.

HMRC aims to align tax with economic activity

According to the policy paper, the measure is intended to better align the tax treatment of cryptoasset lending and liquidity pool arrangements with their underlying economic substance.

HMRC said the new framework will treat certain disposals involving crypto asset loans and liquidity pools as “no gain, no loss”.

This means gains and losses will generally be recognized only when participants dispose of crypto assets, rather than when they enter qualifying lending or liquidity pool arrangements.

The proposal covers three types of arrangements:

Single Crypto asset Lending Arrangements;
Single Crypto asset Borrowing Arrangements; and
Automated Market Making [AMM] arrangements, including qualifying liquidity pools.

For AMM arrangements, individuals exchanging crypto assets for liquidity pool interests will generally qualify for NGNL treatment. Any gain or loss will arise only where the quantity of crypto assets received differs from the amount originally invested.

Changes follow years of industry consultation

The policy follows several years of consultation between HMRC and industry participants.

HMRC said feedback on its 2022 guidance highlighted that the existing interpretation of the tax rules created disproportionate administrative burdens for participants in crypto asset lending and liquidity pools.

That feedback led to a call for evidence in 2022. This was a formal consultation in 2023 and continued engagement with stakeholders before the government finalized its proposed approach.

The department estimates the measure will affect around 700,000 individuals involved in crypto asset loan and liquidity pool transactions. It said those taxpayers will benefit from a framework that is easier to understand and more closely reflects the economic substance of these arrangements.

Reform forms part of broader UK digital asset strategy

The tax changes come as the UK continues to update its regulatory framework for digital assets and tokenized finance.

Unlike a tax exemption, the proposal does not remove Capital Gains Tax obligations. Instead, it changes when gains or losses are recognized. This reduces situations in which tax liabilities arise before participants make an economic disposal of their crypto assets.

HMRC said the legislation will amend the Taxation of Chargeable Gains Act 1992 and will apply from April 6, 2027, giving affected taxpayers and service providers time to prepare for the new framework.

Final Summary

The UK plans to introduce “no gain, no loss” treatment for qualifying crypto lending and liquidity pool transactions.
The reforms, due to take effect from April 6, 2027, follow years of consultation and are expected to affect around 700,000 individuals.

Preguntas relacionadas

QWhat is the key change in the UK's Capital Gains Tax treatment for crypto asset lending and liquidity pools from 2027?

AThe key change is that qualifying cryptoasset lending and liquidity pool transactions will be treated on a 'no gain, no loss' (NGNL) basis. Instead of triggering CGT when assets are lent or deposited, tax will be deferred until the assets are economically disposed of.

QOn what date is the new UK tax measure for crypto lending and liquidity pools scheduled to take effect?

AThe new tax measure is scheduled to take effect from April 6, 2027.

QAccording to HMRC, what is the primary aim of introducing the 'no gain, no loss' treatment for these crypto transactions?

AHMRC aims to better align the tax treatment with the underlying economic substance of the arrangements, ensuring gains and losses are recognized when participants economically dispose of the crypto assets, not when they enter the arrangements.

QWhich three types of crypto arrangements are specifically covered by the new HMRC policy proposal?

AThe three types are: Single Crypto asset Lending Arrangements; Single Crypto asset Borrowing Arrangements; and Automated Market Making (AMM) arrangements, including qualifying liquidity pools.

QApproximately how many individuals does HMRC estimate will be affected by this new tax framework for crypto lending and liquidity pools?

AHMRC estimates the measure will affect around 700,000 individuals involved in crypto asset loan and liquidity pool transactions.

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