Crypto holders in the UK may face increased tax rates.
UK capital gains tax on crypto mirrors stock taxation rates.
Cryptocurrency holders can’t use ISAs for tax protection.
A potential hike in the UK’s capital gains tax rate could negatively impact Britain’s strong five million crypto community. Policy advisor Suzanne Morsfield from CryptoUK expressed concern that raising capital gains tax above the current 28% could severely impact crypto holders, especially since they cannot use Individual Savings Accounts (ISAs) for tax protection on their digital assets.
Suzanne Morsfield, a policy advisor at the UK trade association CryptoUK, warned that a capital gains tax increase could have severe consequences on Britain’s burgeoning crypto investors. Currently, crypto holders in the UK are taxed similarly to those holding stocks, with rates ranging from 10% to 18% for basic taxpayers and 20% to 24% for higher-income individuals.
The crypto community faces a unique challenge: unlike other assets, cryptocurrencies cannot be housed in Individual Savings Accounts (ISAs), which offer substantial tax benefits. ISAs allow individuals to protect gains on various a…
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