UK HMRC Defers Crypto Lending Tax Until Economic Disposal

The U.K. tax authority will defer Capital Gains Tax on certain crypto lending and liquidity pool transactions until users make an economic disposal. The policy shift affects roughly 700,000 individuals, HM Revenue & Customs said.

The change takes effect April 6, 2027. It applies to single-asset lending and borrowing arrangements. Automated market-making pools that involve two or more qualifying cryptoassets also qualify for the deferred treatment.

Under the current regime, selling, swapping or spending crypto can trigger Capital Gains Tax. Basic-rate taxpayers pay 18%; higher-rate taxpayers pay 24%. HMRC’s new approach narrows that for specific DeFi arrangements where users transfer crypto into a lending protocol or liquidity pool without exiting their economic position.

The policy follows years of industry concern over HMRC’s 2022 guidance on crypto lending and liquidity pools. Stakeholders argued the old interpretation created taxable events that did not match the economic reality of the transaction. HMRC opened a call for evidence in July 2022, followed by a consultation in 2023. It published a summary of responses at Budget 2025 and confirmed the new approach on July 13, 2026.