PANews reported on November 28th that, according to CoinDesk, the UK government is developing a new tax framework that could benefit DeFi users. Proposals released this week show that HM Revenue and Customs supports a "no profit, no loss" principle for cryptocurrency lending and liquidity pool arrangements. Under the current system, DeFi users depositing funds into protocols, even just for profit or as collateral for loans, can trigger capital gains tax. The new measure will postpone tax payment until an economically meaningful asset disposal occurs. This means that users depositing cryptocurrencies into lending protocols or providing tokens to automated market makers will no longer need to pay tax on the deposit itself, but only when they eventually sell or trade the assets and realize a profit or loss.

The proposal aims to align tax rules with the practical operations of DeFi, thereby reducing administrative burdens and avoiding unreasonable tax outcomes. The new principles also apply to complex multi-token arrangements: if a user withdraws more tokens than they deposited, the profit will be taxed; if less, it will be considered a loss. However, this model is not yet finalized, and the government is still consulting with professionals and DeFi developers. While HM Revenue and Customs has not set a legislative timetable, it has stated it will continue to engage with the industry to assess the necessity of such legislation.