Foresight News reported that Aave founder and CEO Stani.eth stated, “The UK’s HM Revenue and Customs (HMRC) has published its consultation results regarding the tax implications of DeFi activities (including lending and staking) in the UK. One particularly interesting conclusion is that when users deposit assets into Aave, the deposit itself is not considered a disposal for Capital Gains Tax, creating a 'No Gain, No Loss' (NGNL) scenario. This is a significant victory for UK DeFi users looking to borrow stablecoins using crypto assets as collateral. I am proud of our Aave Labs team’s involvement in this consultation, advocating for DeFi and ensuring that the tax treatment of interactions with lending protocols reflects economic reality: users do not intend to dispose of their assets when borrowing against collateral to meet liquidity needs. We fully support this approach and hope these changes are reflected in UK tax law as soon as possible.”
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