Italians and Brits are in despair: The Labour Government touts a 39% UK crypto tax, hot on the heels of a new 42% Italian crypto capital gains tax.
Italy’s Vice Economy Minister, Maurizio Leo, has announced plans to increase the capital gains tax on digital assets to 42%. According to local news publications, Maurizio Leo made this statement during a press conference on the country’s budget for 2025.
“We foresee an increase in the tax on Bitcoin capital gains from 26% to 42%,” Leo said in a translated version of the report. This increase was approved by the Council of Ministers on Tuesday evening (October 15).
It is aimed at generating resources to support families, youth and businesses. In the same report, Leo said that Italy plans to crack down on cash usage to combat tax evasion.
Proposed Increase In Tax On Crypto Comes After Italy’s Prime Minister Said There Would Be ‘No New Taxes For Citizens’
Italy is in collapse
How can we encourage the proliferation of new realities like bitcoin and crypto?
Raising the already ridiculous 26% tax up to 42%.
If you think about coming to live in Italy, please don't do it.
Every day that passes I always find one more reason to… pic.twitter.com/u3itHYPhzc
— Jake (@Jakeronthia_) October 16, 2024
The current capital gains tax situation for Bitcoin and other digital assets in Italy sees gains above €2,000 ($2,180) taxed at 26%. This current legislation came after several new rules for cryptocurrency taxation were introduced in 2023. Now, in unwelcome news for Italian crypto investors, that figure is set to rise 16%, to 42%.
Before this announcement, Italian Prime Minister Giorgia Meloni had said there would be no new taxes for its citizens.
Meloni made this claim in a post on her official X account.
She said, “As promised, there will be no new taxes for citizens. In addition, we will make the tax cut on workers structural, and 3.5 billion from banks and insurance companies will be allocated to Healthcare and the most vulnerable.”
This Tax Hike For Italians Has Brits Sweating After A Similar Increase Has Been Touted By The UK Chancellor
>Be British Crypto Trader in 2024 #Bitcoin
>U survive in most high-risk, volatile market on earth, take insane risks to try and improve life
>Ur gov hates u, tries to ban/block internet access to futures markets so u can't trade unless big banker boi
>u literally become digital… pic.twitter.com/5wDtHemzIs— Luumuno | 🦧 (@samuel_cooling) October 11, 2024
British crypto enthusiasts will closely monitor this announcement from its European neighbours after recent reports that UK Chancellor Rachel Reeves is considering raising capital gains taxes, including those on digital assets, from 20% to 39%.
Many Brits are calling this potential increase the end of entrepreneurship and risk-on investment in the UK, with many in the crypto community ridiculing the move after years of torrential restrictions and moves against cryptocurrency by the British Government.
Dear young, smart, ambitious Brits. If you can easily leave the UK, do it. @Keir_Starmer and @RachelReevesMP are planning to move Capital Gains Tax up by nearly double (from 20% to 39%). This means there's almost no point in entrepreneurs or investors taking a risk to build…
— Daniel Priestley (@DanielPriestley) October 12, 2024
This move is a far cry from the Government’s 2022 report announcing that stablecoins were to be recognised as a valid form of payment. In that report, Her Majesty’s Treasury called the move ‘part of wider plans to make Britain a global hub for cryptoasset technology and investment.’
Those claims from 2022 were from a Conservative government that seemed willing to explore making the UK a digital asset hub. In contrast, Rachel Reeves’ latest declaration comes from Keir Starmer’s seemingly anti-crypto Labour government.
READ MORE: Italy’s New 42% Crypto Tax Fuels Anger in Crypto Community
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital
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