UK Offers Crypto Tax Break to Non-Residents

The United Kingdom has taken one step forward to becoming a cryptocurrency hub with its latest tax exemption for non-residents and foreign investors while purchasing digital assets through local investment managers or brokers.

The new tax break rule came into effect on 1 January 2023 and is part of Prime Minister Rishi Sunak’s plans to make the United Kingdom a cryptocurrency hub.

The HM Revenue and Customs, which is the UK government’s tax arm, stated to the crypto-focused publication Coindesk that the tax exemptions are in the direction of attracting more global investors.

“To build upon the UK’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 UK managers,” the HMRC stated in an email response to the crypto publication.

Check out the recent London Summit interview with UK MP Lisa Cameron on “Crypto Hub in the Making.”

The UK’s Crypto Tax Guide

The United Kingdom does not have a specific crypto tax regime. Instead, the HMRC imposes existing income and capital gains tax rules on cryptocurrency trading and investment profits.

Though the HMRC has tracked cryptocurrency transactions since 2014, it can only do so for centralized crypto exchange
Exchange

An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications….