Crypto Analyzer

U.K. Enacts Tax Exemption for Foreign Investors Purchasing Cryptocurrency through Local Investment Managers

The United Kingdom announced on Sunday that it will exempt foreign investors from tax if they purchase cryptocurrency via local investment managers or brokers. This tax exemption is part of Prime Minister Rishi Sonak’s plans for making the UK a center for cryptocurrency. Global investors will be attracted to the U.K. by this exemption. They can avoid paying U.K. income tax by only working with U.K. investment managers. In order to encourage funds to include cryptocurrency assets, the exemption was extended to allow them to appoint U.K. investment managers.

The U.K. government’s tax arm HM Revenue and Customs published a guide for taxing resident cryptocurrency traders. It also launched a consultation in July to get your views on taxing decentralized finance (DeFi). If the Financial Services and Markets Bill becomes law, Parliament is currently discussing it. It would give local financial regulators more control over cryptocurrency. The U.K. Treasury will also consult on ways to regulate the cryptocurrency sector in the near future.