UK Adopts ‘No Gain, No Loss’ Tax Treatment for Crypto Lending and Liquidity Pools

The UK will introduce a no gain, no loss tax treatment for qualifying crypto lending and DeFi liquidity pool transactions starting April 6, 2027. This policy ensures that moving cryptocurrency into a lending protocol or liquidity pool is not counted as a taxable disposal. Consequently, Capital Gains Tax will be deferred until users perform an economic disposal or a real cash-out of their assets, effectively delaying the tax charge for these specific cryptocurrency activities.