The taxation of decentralised finance involving the lending and staking of cryptoassets
- From:
- HM Revenue & Customs
- Published
- 27 April 2023
- Last updated
- 26 November 2025 — See all updates
Read the full outcome
Detail of outcome
In 2023 HMRC ran a consultation seeking views on the taxation of decentralised finance involving the lending and staking of cryptoassets, now known as cryptoasset loans and liquidity pools.
Respondents expressed unanimous support for the consultation and its aims but raised concerns about specific elements.
This document summarises the responses received and outlines a potential approach the government is considering.
Original consultation
Summary
The government is seeking views on a potential new taxation framework for cryptoasset loans and ‘staking’ in the context of decentralised finance.
This consultation closesran atfrom
to
Consultation description
The government is committed to retain the UK’s global leadership position in fintech. Last April it announced its intention to explore and resolve specific issues regarding the taxation of the decentralised finance (DeFi) activities of lending and staking. Some stakeholders have highlighted circumstances where the current rules for Capital Gains Tax (CGT), when applied to DeFi, are inconsistent with the substance of the activity.
As part of the review into the application of tax rules to DeFi transactions, the government ran a Call for Evidence from 5 July to 31 August 2022. Most respondents agreed that a change in the tax rules would be beneficial for the industry and users.
This consultation represents the next stage of the policy making process. The government is inviting comments on a potential legislative solution which aims at better aligning the taxation of cryptoassets used in certain DeFi transactions with the underlying economic substance.
HMRC would like to hear from investors, professionals and firms engaged in DeFi activities including:
- technology and financial service firms
- trade associations and representative bodies
- academic institutions and think tanks
- legal, accountancy and tax advisory firms
Documents
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Updates to this page
Published 27 April 2023
Last updated 26 November 2025
href="#full-history">+ show all updates
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Added summary of responses.
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First published.
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Consultation description
The government is committed to retain the UK’s global leadership position in fintech. Last April it announced its intention to explore and resolve specific issues regarding the taxation of the decentralised finance (DeFi) activities of lending and staking. Some stakeholders have highlighted circumstances where the current rules for Capital Gains Tax (CGT), when applied to DeFi, are inconsistent with the substance of the activity.
As part of the review into the application of tax rules to DeFi transactions, the government ran a Call for Evidence from 5 July to 31 August 2022. Most respondents agreed that a change in the tax rules would be beneficial for the industry and users.
This consultation represents the next stage of the policy making process. The government is inviting comments on a potential legislative solution which aims at better aligning the taxation of cryptoassets used in certain DeFi transactions with the underlying economic substance.
HMRC would like to hear from investors, professionals and firms engaged in DeFi activities including:
- technology and financial service firms
- trade associations and representative bodies
- academic institutions and think tanks
- legal, accountancy and tax advisory firms
Documents
Share this page
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Updates to this page
Published 27 April 2023
Last updated 26 November 2025
href="#full-history">+ show all updates
-
Added summary of responses.
-
First published.
Sign up for emails or print this page
Share this page
SharingThe willfollowing links open the page in a new tab
Updates to this page
-
Added summary of responses.
-
First published.