The U.K. government has introduced a groundbreaking 'no gain, no loss' (NGNL) tax framework for decentralized finance (DeFi) lending and liquidity providing. This reform eliminates capital gains tax events when users deposit tokens into lending protocols or liquidity pools, deferring tax liabilities until the tokens are sold, swapped, or disposed of. The updated approach reflects actual economic outcomes, reducing administrative burdens for DeFi participants and aligning taxation with real gains or losses. The new rules also apply to crypto borrowing. While cryptoassets remain taxable upon disposal, this reform marks a significant improvement for retail users. Simultaneously, HMRC is enhancing enforcement and reporting measures as part of a broader strategy to regulate crypto activities in the U.K.
Continue to read UK Implements ‘No Gain, No Loss’ Tax Rule to Simplify DeFi Lending Taxation
The U.K. government has introduced a groundbreaking 'no gain, no loss' (NGNL) tax framework for decentralized finance (DeFi) lending and liquidity providing. This reform eliminates capital gains tax events when users deposit tokens into lending protocols or liquidity pools, deferring tax liabilities until the tokens are sold, swapped, or disposed of. The updated approach reflects actual economic outcomes, reducing administrative burdens for DeFi participants and aligning taxation with real gains or losses. The new rules also apply to crypto borrowing. While cryptoassets remain taxable upon disposal, this reform marks a significant improvement for retail users. Simultaneously, HMRC is enhancing enforcement and reporting measures as part of a broader strategy to regulate crypto activities in the U.K.
Continue to read UK Implements ‘No Gain, No Loss’ Tax Rule to Simplify DeFi Lending Taxation
Yorumlar
Yorum Gönder