UK HMRC Consulting on Taxation of DeFi Involving the Lending and Staking of Cryptoassets

UK HMRC has launched an open consultation on the taxation of decentralised finance (DeFi) involving the lending and staking of cryptoassets. The intention of the consultation is to create a regime that better aligns the taxation of cryptoassets used in DeFi lending and staking transactions (DeFi transactions) with the underlying economic substance, whilst reducing the administrative burden on users. The consultation will run for 8 weeks from 27 April 2023 to 22 June 2023.

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1. Introduct…