UK implements cryptocurrency tax exemption for overseas investors

Cryptocurrency coins

Foreign investors from across the globe have now come a step closer to putting funds in the crypto market of the United Kingdom. The British government recently enforced a critical regulation that will offer crypto tax relief to investors from abroad who purchase the digital assets via local investment managers or brokers.

Those with concerns regarding new and emerging asset classes such as crypto often look for sound investment advice in Shropshire, Derbyshire, and other counties across the country. As experts and independent financial advisors, wealth managers are often called upon to explain the risks involved in acquiring different assets, along with the potential returns.

According to a recent update provided by HMRC, the tax break was effective from January 1 this year. This brand-new provision now exempts foreign investors that decide to invest in Britain’s crypto market employing a local broker.

On top of promoting foreign investment and encouraging the use of local investment managers, the new provision is designed to bring the UK one step closer to becoming a dedicated hub for crypto. This vision was initially set out by Prime Minister Rishi Sunak in December 2022 when the Chancellor of the Exchequer first announced the Edinburgh Reforms.

The newly unveiled tax break will also be extended to “cryptoassets” as described in the Organisation for Economic Co-operation and Development’s ‘Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard’. However, crypto assets excluded will include those which do not already classify as part of the Investment Transactions List.

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