UK should lower crypto tax rate to encourage growth – MP Matt Hancock
Crypto Tax Rate
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UKshould lower crypto tax rate to encourage growth – MP Matt Hancock
MattHancock, former Secretary of State for Digital, culture, music, and sport, saidthe U.K. must take a long-term approach and lower crypto taxes to allow digitalinnovation to grow.
HMRC, theU.K. tax authority, was the subject of focus for Hancock during the Q&Asection of his address. The U.K. tax laws treat crypto the same as other assetsmeaning that a 20% capital gain tax applies to all crypto trades.
Any time a digitalasset is traded for another, it is a taxable event. Further, activitiessuch as mining and yield farming are considered income and taxed at 40% foranyone earning over £50,271. However, people earning less than £12,570 annuallypay 0% income tax.
Capitalgains tax in the U.K. is complicated to understand and involves calculating your income tax toestablish if you are within the basic tax rate banding. Those within the ‘basictax rate’ pay 10% capital gains tax, with others paying 20%.
Hancock, bullishon crypto and digital assets as a method for the U.K. to regain dominance inthe global financial markets, now believes the U.K. tax rate for crypto doesnot best serve innovation within the country.
During thekeynote, Hancock repeatedly asked for feedback from the British public on theissues they face working in crypto in the U.K. Any U.K. citizens wishing tocontact Hancock can do so via the details listed on the Parliament website.
Matt Hancock, a Conservative MP from the U.K., has proposed to lower the country’s crypto tax rate. He believes that doing so will stimulate crypto growth in the U.K. because it will decrease the barriers for businesses and individuals to operate within the crypto sector.