UK Tax Regulator Updates Guidance on Staking and DeFi Lending

Posted on by American Coins & Gold

UK Tax Regulator Updates Guidance on Staking and DeFi Lending
Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax agency, has updated its guidance on the taxation of returns from decentralized finance (DeFi) lending and staking in proof-of-stake networks.According to the new guidance, published Wednesday, how a return from lending or staking is taxed depends on whether it is considered capital or revenue. But deciding if a return is capital or revenue is complicated, as the HMRC itself admits.“The lending/staking of tokens through decentralized finance (DeFi) is a constantly evolving area, so it is not possible to set out all the circumstances in which a lender/liquidity provider earns a return…