TechFlow news, October 31 — According to DLNews, UK Chancellor Rachel Reeves unveiled her first budget, raising the top capital gains tax rate from 20% to 24%, while the lower rate will also increase from 10% to 18%. Although the rise is smaller than tech industry players had previously feared, it has still drawn criticism from cryptocurrency sector representatives. A spokesperson for CryptoUK told media they were disappointed that the Chancellor missed the opportunity to align digital asset taxation with traditional trading rules and failed to provide clearer tax guidance for the industry, leaving many startups, growing firms, and investors in a state of uncertainty.
Reeves said the rate adjustments aim to cover the £22 billion public spending gap left by the previous Conservative government. She noted that even after the increase, the UK’s capital gains tax rates remain lower than those in other European G7 economies.
