Why is the UK changing crypto tax rules?

The UK government said the changes are designed to make the tax treatment of crypto lending and liquidity pools clearer.

What does "no gain, no loss" mean?

It means a qualifying crypto transfer would not immediately trigger a capital gains tax liability.

Which crypto activities are covered?

The proposal covers cryptocurrency lending, borrowing and participation in liquidity pools.

When would capital gains tax apply?

The government said tax would generally apply when the crypto assets are eventually sold or otherwise disposed of.

Have the new rules taken effect?

No. The proposals are still under consultation, and the government is seeking feedback before introducing legislation.

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UK proposes crypto lending tax changes

Written by Liezl GambePublished Jul 15, 2026, 1:56 AM

The UK government has proposed new tax rules for crypto lending and liquidity pools.
The changes would allow some transactions to qualify for "no gain, no loss" tax treatment.
The government said the proposal aims to make crypto taxation clearer and more consistent.

The UK government has proposed new tax rules that would change how cryptocurrency lending and liquidity pool transactions are taxed.

The proposal would allow qualifying crypto transfers to receive "no gain, no loss" treatment instead of triggering an immediate capital gains tax event.

"These changes are intended to provide greater certainty for taxpayers," the government said.

The draft rules cover crypto lending, borrowing and liquidity pools where ownership of digital assets temporarily changes.

The government said capital gains tax would generally apply only when the assets are finally sold or otherwise disposed of.

The proposal is part of the UK's broader effort to update tax rules as digital asset markets continue to grow.

The government is seeking industry feedback before deciding whether to introduce the changes into law.