From January 1, 2023, overseas investors who choose to work with local brokers or investment managers to make cryptocurrency investments will be free from paying taxes in the United Kingdom.
The country already offers tax guidance to local bitcoin traders. In order to get advice from experts and investors on how to tax decentralized finance, HM Revenue and Customs (HMRC) published a consultation in July.
According to HMRC, the exemption was a key element in luring international investors, as it guaranteed that foreign investors wouldn't be subject to taxation simply for selecting a UK investment manager.
The exemption has been expanded to cover crypto assets in an effort to maintain the status of an investment management hub and prevent funds related to crypto assets from delaying the appointment of UK managers.
The current prime minister, Rishi Sunak, declared in April that he wanted to turn the UK into a major cryptocurrency centre. A part of Sunak's intentions to transform the U.K. is the tax exemption, which was unveiled in December. a center for the bitcoin sector.
The UK said earlier this month that it will expand the tax advantages for investment managers to cover crypto assets. 30 regulatory measures for the UK banking industry were outlined by Chancellor of the Exchequer Jeremy Hunt. On the list were the launch of the digital pound, testing of the blockchain, and greater investment in bitcoin businesses.