The law currently treats many of these transactions as disposals for tax purposes. This usually triggers a capital gains tax (CGT) charge, despite the owner still having an economic interest in the asset.
According to industry representatives and tax professionals, these rules cause difficulty and do not reflect the “underlying economic substance” of DeFi transactions.
Instead, the Government plans to introduce separate rules for DeFi lending and staking. Under the proposed changes, CGT will only apply once the asset is fully disposed of.
The Government hopes this measure will reduce costs and simplify the administrative burden for taxpayers involved in DeFi transactions. The approach also allows policymakers to make further legislative changes as the DeFi market evolves.
You might be interested in...
01 May 2026
As we've now entered the new tax year, we've outlined below how to prepare for the new tax system changes for 2026/27 and why planning ahead for your tax return in January 2027 is advised. Read our blog for an overview of the upcoming changes.
Learn more
New Tax System Changes for 2026/2730 Apr 2026
Statutory accounts show the past. Management Information delivers timely insights into performance and cash flow, driving better commercial decisions.
Learn more
Why good Management Information is essential for Business Growth
28 Apr 2026
While you can’t control geopolitical tensions, economic volatility, shifting regulations, you can control how your business is structured to respond to them
Learn more
When To Review Your Business Structure
28 Apr 2026
Market volatility and deal pace are changing how SME owners view risk and reward. Read our insights on value creation in today’s M&A market.
Learn more
Increasing the Value of your Business
27 Apr 2026
Compliance matters, but most commercial problems do not arrive neatly at month end. Modern finance supports decisions as they happen, not just records them afterwards.
Learn more
Building a Better Business with an Outsourced Finance Function
20 Apr 2026
For many businesses, the loss of the key person can cause disruption. Having Key Person Insurance can ease financial risk and uncertainty.
Learn more
What Is Key Person Insurance and Why Does It Matters for Your Business?