CryptoUK Policy Advisor: UK's Capital Gains Tax Increase to 28%+ Will Impact Cryptocurrency Holders

On October 30, UK Chancellor of the Exchequer Rachel Reeves announced her party's first UK budget in more than a decade on Wednesday. According to Suzanne Morsfield, a policy advisor at trade association CryptoUK, she said that the prospect of Reeves raising capital gains tax to more than 28% would hit the UK's roughly 5 million cryptocurrency holders particularly hard. Capital gains tax, which refers to gains from investments in assets such as stocks or real estate, affects a very small number of people in the UK. However, Morsfield said that almost all crypto investors would be affected because the main way in which crypto assets are taxed is under the capital gains regime.Morsfield pointed to data from the UK's Financial Conduct Authority, which suggests that 63% of the UK's five million cryptocurrency owners hold cryptocurrencies worth £500 or less, with an average holding of 1,600 The average holding is 1,600 pounds.