UK to Defer Capital Gains Tax on DeFi Lending, Liquidity Pool Deposits
Decrypt·
60-second summary
The UK government is set to defer capital gains tax on DeFi lending and liquidity pool deposits, treating them as investments rather than disposals, which would typically incur tax. This means that crypto moved into lending protocols or liquidity pools won't be considered taxable until a real cash-out is made, potentially reducing tax liabilities for investors.
Moving crypto into a lending protocol or liquidity pool won’t count as a taxable disposal, deferring the charge until a real cash-out.