The Independent reported on Thursday, September 17, 2026, on a new analysis of HM Revenue and Customs (HMRC) data by the Labour Party, indicating that tax proposals from Reform UK would provide more than £100 million in annual relief to high-earning cryptocurrency investors. The analysis focuses on Reform UK’s plan to lower Capital Gains Tax (CGT) on crypto assets to a flat 10% rate. Currently, basic-rate taxpayers pay 18% and higher-rate taxpayers pay 24% on these gains.
The report follows the disclosure of two donations totaling £72 million to Reform UK from crypto billionaires Christopher Harborne and Ben Delo, who last week handed over £36 million each. Reform UK insists the donors are "patriots" who want to support the party's preparations for government. Previous reporting by The Independent found that 60% of Reform UK's donations since the general election have come from sources linked to the cryptocurrency sector.
According to HMRC statistics from the 2024/25 period, 17,600 individuals reported gains from crypto assets totaling £1.38 billion. A group of 240 individuals reported gains exceeding £1 million each, accounting for £717 million of the total. The Labour analysis suggests that under Reform UK’s 10% flat tax proposal, this group of 240 individuals would save around £100 million in tax per year, or half a billion pounds over a five-year parliamentary term.
Economists and tax experts have questioned the proposal. Paul Johnson, former director of the Institute for Fiscal Studies, stated there is "no feasible economic rationale" for treating crypto assets more leniently than other assets. Tax lawyer Dan Neidle suggested the plan might not generate growth and could instead incentivize a shift away from productive assets. A Reform UK spokesperson defended the party's position, stating it is the only one calling for "proper regulation" and consumer protection in the industry, while sources close to Nigel Farage characterized opponents' stances as "economically incompetent."
Housing Secretary Angela Rayner stated that the Labour Party could change the law retrospectively to force Reform to hand the £72 million donations back. Additionally, the Standards Commissioner is investigating a separate £5 million gift from Mr. Harborne to Reform UK leader Nigel Farage. Mr. Farage stated the funds were a personal gift for his security received before he became an MP and did not require declaration. Mr. Farage has also personally invested in the Tether stablecoin, a cryptocurrency linked to Mr. Harborne.
A person holding cryptocurrency would notice this change in their annual tax filings and net profits from asset sales. If the policy were implemented, an investor who previously paid £24,000 in Capital Gains Tax on a £100,000 profit would instead pay £10,000, keeping an additional £14,000. Critics such as the Labour Party and some tax experts argue this could cost more than £100 million annually in public revenue.
The proposal sets a precedent for treating digital assets differently than other assets. If implemented, experts warn it could delay growth in other sectors by incentivizing a shift away from productive assets. However, Reform UK argues it is the only party with constructive plans for the industry. The next steps involve potential legislative action by the Labour party to restrict crypto-linked political donations, while the Standards Commissioner’s investigation into Mr. Farage’s gift continues.