UK Implements Crypto Tax Exemption for Foreigners Using Local Brokers
The restrictions now in force are part of the government’s strategy to transform the nation into a cryptocurrency centre.
On Sunday, the United Kingdom will implement a tax exemption for overseas investors acquiring cryptocurrencies via local investment managers or brokers.
The tax exemption, which was announced in December, is part of Prime Minister Rishi Sunak’s plans to transform the United Kingdom into a cryptocurrency powerhouse.
The government’s tax agency, HM Revenue and Customs said in an email to CoinDesk, “This exemption is a crucial aspect in attracting global investors, since overseas investors will not be subject to U.K. tax by hiring U.K.-based investment managers.” “In order to strengthen the U.K.’s position as a centre for investment management, this exception has been expanded to cover crypto assets, so that funds that hold them will not be discouraged from hiring U.K. managers.”
There is already tax guidance for crypto dealers residing in the nation. In July, HM Revenue and Customs released a consultation to seek opinions from investors and experts about the taxation of decentralized financing (DeFi).
Parliament is now discussing the Financial Services and Markets Bill, which, if enacted, would give local financial authorities broader authority over cryptocurrencies. In the next weeks, the U.K. Treasury aims to initiate a consultation on how to regulate the cryptocurrency industry.