UK to Extend "No Gain, No Loss" Tax Treatment to Crypto Lending From April 2027

HM Revenue & Customs (HMRC) will introduce a "no gain, no loss" capital gains tax treatment for certain cryptoasset lending and liquidity pool activity, taking effect on April 6, 2027. Under the new approach, capital gains tax will be deferred until an economic disposal occurs, such as selling tokens or permanently withdrawing them. The change is designed to better reflect how decentralized finance (DeFi) works and removes the previous friction where depositing crypto into lending or liquidity arrangements could be treated as a taxable disposal. HMRC said the treatment will cover single-token lending and borrowing, along with multi-token automated market making structures used in liquidity pools. While principal deposits will be tax-neutral under the new framework, any rewards or yield earned from these activities will continue to be taxed as miscellaneous income in the year received. Market reaction has pointed to rising interest in crypto lending and liquidity pools, with the rule change viewed as potentially supportive for demand in tokens used in these DeFi settings, including XRP. What to watch: Traders and institutions are likely to track whether participation in lending and liquidity pools increases once the policy takes effect. Comments from industry leaders, including Ripple CEO Brad Garlinghouse, as well as moves by major financial institutions, may shape expectations for XRP. Developments around XRP ETF approvals, major bank announcements, Bitcoin price swings, and U.S. Federal Reserve interest-rate decisions could also influence XRP-related sentiment. Get live prediction market analysis powered by Vera. Sign up for Vera.