{"id":56154,"date":"2025-11-28T14:01:37","date_gmt":"2025-11-28T07:01:37","guid":{"rendered":"https:\/\/hbbgroup.net\/uk-takes-meaningful-step-forward-with-proposed-defi-tax-overhaul\/"},"modified":"2025-11-28T14:01:37","modified_gmt":"2025-11-28T07:01:37","slug":"uk-takes-meaningful-step-forward-with-proposed-defi-tax-overhaul","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/zh\/uk-takes-meaningful-step-forward-with-proposed-defi-tax-overhaul\/","title":{"rendered":"UK takes \u2018meaningful step forward\u2019 with proposed DeFi tax overhaul"},"content":{"rendered":"
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The UK has floated a new tax framework that eases the burden on decentralized finance (DeFi) users, with deferred capital gains taxes on crypto lending and liquidity pool users until the underlying token is sold, which the local industry has welcomed.<\/p>\n

HM Revenue and Customs<\/a> (HMRC) proposed<\/a> on Wednesday a \u201cno gain, no loss\u201d approach to DeFi that would cover lending out a token and receiving the same type back, borrowing arrangements and moving tokens into a liquidity pool.\u00a0<\/p>\n

Taxable gains or losses would be calculated when liquidity tokens<\/a> are redeemed, based on the number of tokens a user receives back compared to the number they originally contributed, according to the proposal.\u00a0<\/p>\n

Currently, when a user deposits funds into a protocol, regardless of the reason, the move may be subject to capital gains tax. In the UK, capital gains tax rates can<\/a> vary between 18% and 32%, depending on the action. <\/p>\n

Tax framework a \u2018positive signal\u2019 for UK crypto regulation\u00a0\u00a0<\/h2>\n

Sian Morton,\u00a0marketing lead at the crosschain payments system Relay protocol, said<\/a> HMRC\u2019s no gain, no loss approach is a \u201cmeaningful step forward for UK DeFi users who borrow stablecoins against their crypto collateral, and moves tax treatment closer to the actual economic reality of these interactions.\u201d<\/p>\n

\u201cA positive signal for the UK\u2019s evolving stance on crypto regulation,\u201d she added.<\/p>\n

Maria Riivari, a lawyer at the DeFi platform<\/a>\u00a0Aave, said<\/a> the change \u201cwould bring clarity that DeFi transactions do not trigger tax until you truly sell your tokens.\u201d<\/p>\n

\u201cOther countries facing similar questions may want to take note of HMRC\u2019s approach and the depth of research and consideration behind it,\u201d she added.\u00a0<\/p>\n

Source: <\/em>Maria Riivari<\/em><\/a><\/figcaption><\/figure>\n

Aave CEO Stani Kulechov said<\/a> the proposal was \u201ca major win for UK DeFi users who want to borrow stablecoins against their crypto collateral.\u201d<\/p>\n

Related: <\/strong><\/em>Switzerland delays crypto tax info sharing until 2027<\/strong><\/em><\/a><\/p>\n

DeFi tax overhaul not set in stone yet\u00a0<\/h2>\n

However, the proposal is not a done deal yet. HMRC said it\u2019s continuing to engage with relevant stakeholders \u201cto assess the merits of this potential approach, and the case for making legislative change to the rules governing the taxation of crypto asset loans and liquidity pools.\u201d\u00a0<\/p>\n