Lending cryptocurrency and capital gains tax

I am considering lending BTC to an individual overseas for a specific period and with interest. The agreement will be drafted and signed by a solicitor, and the loan will be repaid in the same cryptocurrency with interest paid in the same cryptocurrency. I am aware that the income from the interest earned will need to be reported, and income tax will have to be paid on it. I need to confirm if lending out my BTC will be considered as a disposal for capital gains tax purposes.

Hi,

We don't have information about whether the loan is being made direct or through a DeFi platform. Please refer  to:

Cryptoassets Manual- 

and

CRYPTO61200 - Decentralised Finance: Lending and staking: Income tax: contents

Thank you.

Hi, The loan will be made directly to an individual without using any platforms. Kind Regards

Hi,
We can't provide advice on individual cases in this forum. The guidance at CRYPTO61200 you were previously referred to, still applies.
You may also want to consider CRYPTO61650:
CRYPTO61620 - Decentralised Finance
Thank you