UK’s Crypto Tax Policy Hits Hard – 12% of Investors Brace for 24% CGT in April 2025!

The UK government is under increasing pressure to introduce a crypto tax policy aimed at directed investments into domestic equities. Lisa Gordon, chair of investment bank Cavendish, states that a tax on cryptocurrency transactions could channel funds into the stock market, strengthening the UK economy.  She asserts that equity contributes more to economic growth factors than volatile digital assets.

Why UK Investors Might Change Their Portfolios?

Currently, the UK charges 0.5% on equity trades, making around £3 billion annually. Gordon recommends decreasing this charge through the implementation of a crypto policy on taxation to drive an investment realignment to equities. She believes that by so doing, it would increase businesses, create jobs, and enhance the overall UK economy.

12% of UK adults own cryptocurrency as of 2025. A large majority of these investors are below the age of 45, which points towards an online trend of investments. Yet, 10% of crypto investors do not perform any research before investing, which is a concern for financial security.

Will Crypto Taxation Drive Innovation Away or Support the UK Economy?

The UK share market has been struggling for the last two years. In 2023, 18 firms floated, fewer than the 23 that floated in 2022, and 88 delisted out of fear of liquidity shortage. This has led experts such as Gordon to call for a change of strategy to improve investor confidence.

The cost-of-living crisis has also dampened investment activity. According to reports, 44% of adults in the UK cut back on their investments, and nearly 25% sold their holdings to pay bills. This is to make sure that measures like a crypto tax policy are put into place to encourage wise investment choices.

The Financial Conduct Authority (FCA) has also put greater emphasis on digital assets. UK companies in 2025 must report crypto assets to the regulators to determine financial stability threats. Tax laws around crypto are changing at the same time. 

The Capital Gains Tax (CGT) rates were raised by the UK government starting in April 2025. Both the basic rate of 10% and the higher rate of 20% will rise to 18% and 24%, respectively. This will cover profits from asset sales, such as cryptocurrency sales. These regulation changes reflect a broader effort to align crypto taxation with traditional investment policy.

Development and Future Directions

If implemented, a crypto tax policy would encourage greater participation in the stock market, with more firms going public. A stronger equity market would attract foreign investors and create new economic opportunities.

However, critics caution that overtaxed digital assets will suppress innovation in the blockchain industry. The UK has already surpassed the EU’s markets in the Crypto-Assets (MiCA) framework. Balancing investor protection and industry growth remains a top concern for policymakers.

Final Verdict: Assessing the Effect of the UK Crypto Tax Policy

The argument on the crypto tax policy persists as the government weighs the implications of its effect on the stock market. As much as its proponents feel that it can drive investments into traditional assets, its potential negative effects, like inhibiting innovation in the crypto space, are cautioned by the opponents.

The UK economy can be stabilized by encouraging a shift away from cryptocurrency and towards stock, but there are few chances of this policy becoming popular. It would hinge upon overall economic situations, regulation clarity, and investment sentiment.