The UK Budget 2024 is here, and Chancellor Rachel Reeves has unveiled changes that will affect everything from paychecks to, you guessed it, crypto taxes!

Let’s discuss how these updates impact your wallet and investments.

1- Capital Gains Tax Changes

Starting April 2025, Capital Gains Tax (CGT) rates are going up:

The lower rate will rise from 10% to 18%.
The higher rate will increase from 20% to 24%.

While residential property taxes will stay at 24%, this means crypto investors will have to pay more when selling digital assets for a profit.

What does this mean for you?

Higher Taxes on Gains: If you sell crypto, you will pay taxes at these new rates, which could leave you with less money in your pocket.
No Property Exemption: Unlike property sales, crypto gains won’t get any tax breaks, so you will feel the full tax hit.
Keep Those Records: With taxes going up, accurate record-keeping is crucial now more than ever. You want to make sure your tax reporting is spot-on to avoid any surprises.

“Crypto Accountants can help you with the Crypto Tax Guidance!! Book an appointment today to avoid crypto tax penalties. ”

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2- Revamped Non-Dom Tax Rules

Also starting in April 2025, the rules for non-domiciled taxpayers are changing. The current “remittance” basis will be replaced with a system based on residency.

Here’s what this means for crypto investors moving to the UK:

Global Tax on Crypto

Now, if you have crypto assets held or earned outside the UK, you will still have to pay UK taxes on them, even if you don’t bring that money into the country. It means higher tax bills for those who used to avoid this by using the remittance basis.

Temporary Tax Break for New Residents

If you are a newcomer who hasn’t lived in the UK for the last 10 years, you will get a 4-year tax relief on foreign income, including crypto gains.

Lower Tax Rates for Bringing Crypto Back

For non-doms bringing in crypto gains earned before 2025, you can enjoy lower tax rates of 12% for the first two years and 15% in the final year.

Keep Up the Crypto Tax Transparency with Crypto Accountants!

The UK Budget 2024 has some big changes that every crypto investor should note.

With rising Capital Gains Tax rates starting in April 2025, selling your digital assets will cost you more. It’s time to sharpen your record-keeping and get strategic with your tax planning!

Plus, the new rules for non-doms mean that global crypto gains will now be taxed in the UK, especially if you are moving here.

Chat with your Crypto Accountant for crypto tax planning and keep your crypto investments growing strong!

Crypto Capital Gains Tax Hike in UK Budget 2024