Woofun AI reports that HM Revenue & Customs will implement a "no gain, no loss" treatment for certain crypto asset lending and automated market maker liquidity pool transactions beginning April 6, 2027. This policy amends the Taxation of Chargeable Gains Act 1992, deferring capital gains tax until users economically dispose of the underlying assets.

The measure targets approximately 700,000 individuals and trustees engaged in single crypto asset lending, borrowing, or automated market making. Tax liability arises only upon exit if the quantity of assets received differs from the initial provision; otherwise, no gain or loss is recognized.