The UK Enforces a Cryptocurrency Tax Break for Visitors Who Use Local Brokers

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Last Updated on January 1, 2023 by Bitfinsider

Starting Sunday, the U.K. will enforce a tax exemption for international investors buying cryptocurrency through regional investment managers or brokers.

The tax exemption, which was announced in December, is a component of Prime Minister Rishi Sunak’s plans to make the U.K. a hub for the cryptocurrency industry.

The government’s tax arm, the HM Revenue and Customs, said: ““This exemption is an important factor in attracting global investors, meaning foreign investors won’t be brought into U.K. tax simply by appointing U.K.-based investment managers. To build upon the U.K.’s position as an investment management hub, this exemption has been extended to include crypto assets, so that funds which include them aren’t put off from appointing U.K. managers.”

The nation already provides resident cryptocurrency dealers with tax advice. HM Revenue and Customs released a consultation in July to get opinions from investors and industry experts on how to tax decentralized financing (DeFi).

The extensive Financial Services and Markets Bill, which, if approved into law, would allow local financial regulators more control over cryptocurrencies, is currently being debated in Parliament. The U.K. Treasury also intends to begin a consultation on how the cryptocurrency industry may be regulated in the upcoming weeks.

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