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Reform UK wants to cut crypto investor tax by £100M a year, report
Reform UK has proposed cutting capital gains tax for crypto investors from 18% to 10% for both high and basic-rate taxpayers, which would reduce government tax revenue by £100 million a year, according to a report.
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What happened
Reform UK has proposed cutting capital gains tax for crypto investors from 18% to 10% for both high and basic-rate taxpayers, which would reduce government tax revenue by £100 million a year, according to a report.
Confirmed
Global impact / market context
A lower capital gains tax means investors keep more profit when selling crypto, making it more attractive. This could boost trading and investment, but also reduce government income from these gains, affecting public finances.
Analyst inference
If adopted, this tax cut might draw more crypto trading to the UK compared to other countries. More trading could improve price discovery and market activity, but it also depends on whether other nations adjust their own tax rules.
Analyst inference
What to watch
- Watch for official confirmation from Reform UK that this tax cut will be part of their election platform, since the current information is only a report. Confirmed
- Monitor any government statements or legislation that mention cutting the capital gains tax rate from 18% to 10%, which would reduce annual revenue by £100 million. Confirmed
- Watch how crypto trading volumes change if the tax cut becomes law, as lower taxes may encourage more selling and buying, although other market factors also matter. Analyst inference