UK to Apply Tax Exemption to Cryptocurrencies
Foreign investors in the UK will be exempt from tax if they invest through local brokers or investment managers. The said decision has entered into force.
2022 has been a tough year for the cryptocurrency market. The collapses in the sector, where the bear market never ended, also lost the appetite of the investors. However, when we evaluate the picture as a whole, it is necessary to accept that the adoption of blockchain technology and cryptocurrencies has increased. Increasing adoption also makes it mandatory for countries to take steps regarding cryptocurrencies. At the beginning of these steps, of course, is the taxation system. The first news of the year came from England. The country announced that it has decided to apply tax exemptions to foreigners. The tax exemption to be applied in cryptocurrencies for foreign investors will increase the interest of investors in the country.
The UK will implement tax exemptions for foreign investors who buy crypto through investment managers or brokers.
Investors who choose to work with local brokers or investment managers to make cryptocurrency investments will be exempt from paying taxes in the UK. When foreign investors hire an investment manager from the UK, they are exempted from being subject to UK tax. This is considered to be of critical importance in attracting foreign investors.
The UK Treasury plans to launch a consultation on how the crypto sector can be regulated in the coming weeks.