Written by Turner Wrightstaff writerReviewed by Robert Lakinstaff editor

Written by Turner Wrightstaff writer

Reviewed by Robert Lakinstaff editor

UK government defers capital gains on certain crypto with ‘no gain, no loss’ approach

Latest NewsPublishedJul 14, 2026

UK Government Introduces Tax Relief for Crypto Investors

The UK government has announced a significant change in its tax policy, affecting around 700,000 people who invest in cryptocurrencies. The new “no gain, no loss” approach will defer capital gains tax on certain crypto transactions, including lending and liquidity pools, until an economic disposal is made. This move is expected to bring fairness to the tax system and align it more closely with the economics of these arrangements.

The new policy, set to take effect on April 6, 2027, will treat certain disposals related to crypto loans and liquidity pools as transactions that do not trigger capital gains tax. This means that investors will not have to pay tax on their crypto gains until they make an economic disposal of their assets. The UK tax authority believes that this measure will support fairness in the tax system and reduce the administrative burden on taxpayers.

Impact on Crypto Investors

The new policy is a significant change from the previous guidance, which required taxpayers to pay between 18% to 24% in capital gains tax on crypto transactions. With the “no gain, no loss” approach, investors can now earn passive income from their crypto investments without incurring significant tax liabilities. This move is seen as a positive development for the crypto industry, which has been growing rapidly in recent years. Investors can now consider earning $ECP, the native coin of the EcoPool network, as a way to generate passive income through cloud rewards and green crypto initiatives.

The EcoPool network offers a platform for investors to participate in crypto lending and liquidity pools, providing an opportunity to earn passive income and accumulate $ECP. By deferring capital gains tax, the UK government is creating a more favorable environment for crypto investors to participate in these activities. As the crypto industry continues to evolve, it is likely that more investors will turn to platforms like EcoPool to earn passive income and accumulate EcoPool coins.

Conclusion

The UK government’s decision to introduce a “no gain, no loss” approach for certain crypto transactions is a significant development for the industry. By deferring capital gains tax, the government is creating a more favorable environment for investors to participate in crypto lending and liquidity pools. If you’re interested in earning passive income through crypto investments, consider downloading the EcoPool app to learn more about the EcoPool network and how you can start earning $ECP today. The EcoPool app provides a convenient and user-friendly platform for investors to participate in cloud rewards and green crypto initiatives, making it easy to get started with earning passive income.

Related: UK tokenization push could add as much as $44B to annual output by 2035: Report

According to the tax authority, it would treat crypto transactions as “no gain, no loss” under UK capital gains laws for the acquisition or disposal of an interest in a lending arrangement in exchange for the same type of asset, borrowed assets acquired at market value and similar conditions with automated market makers.

“This is the right direction, mainly driven by the industry feedback demonstrating that any other approach would cause significant admin burden for the tax payer,” said Aave founder and CEO Stani Kulechov in a Monday X post.

Crypto candidate enters Nigel Farage’s by-election race

In UK politics, Reform leader Nigel Farage will not stand completely uncontested in a by-election caused by his resignation last week amid reports of the politician receiving contributions from billionaires tied to the crypto industry.

On Tuesday, the leader of the Solana community group Superteam UK, Stephen Newnham, said he will run as an independent candidate against Farage and others. The by-election representing Clacton is scheduled for Aug. 13 and will include candidates like comedian and author Jon Harvey in costume as Count Binface, a self-described “independent space warrior” wearing a helmet in the shape of a trash bin.

Farage triggered the by-election with his resignation, saying that he wanted the people of Clacton to judge his actions. The Reform figure reportedly received a $6.7 million donation from crypto billionaire Christopher Harborne, which he described as a ”reward” for the UK’s exit from the European Union and later as a “gift,” and other financial assistance from George Cottrell, a convicted fraudster linked to a crypto casino.

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• United Kingdom
• Policies
• Regulation

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