CryptoTax UK · Guide
Crypto Lending Tax UK — HMRC Guide for 2025/26
Crypto lending platforms let you earn interest on idle assets — but HMRC may treat the interest as taxable income. This guide explains the UK tax rules for crypto lending. Educational only — not tax advice.
Estimate my crypto lending tax →Interest from lending — Income Tax
Interest earned from lending crypto (e.g. on Aave, Compound or centralised platforms) is likely treated as miscellaneous income by HMRC, taxable in the year received at your marginal Income Tax rate.
Depositing into a lending protocol — disposal?
Whether depositing crypto into a lending protocol constitutes a disposal is uncertain. Many practitioners treat it conservatively as a disposal. Specialist advice is recommended for significant amounts.
Crypto-backed loans — borrowing
Taking out a crypto-backed loan is not typically a disposal in itself. However, if you are liquidated and lose your collateral, the liquidation is a disposal event.
Frequently asked questions
Is crypto lending interest taxed as income in the UK?
Yes — most practitioners and the general HMRC framework suggest lending interest is miscellaneous income in the year received.
What if I lost money in a failed lending platform?
If a platform collapses and you cannot recover your crypto, you may be able to make a negligible value claim to HMRC to crystallise a capital loss.
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Estimate my crypto lending tax →Educational guidance only. CryptoTax UK is not a regulated tax adviser and the information above does not constitute tax, legal or financial advice. Always confirm your specific position with HMRC or a qualified accountant before filing.