The U.K.’s administration under Prime Minister Rishi Sunak – who came to power in October last year – has introduced a tax exemption for foreign investors using local brokers to buy crypto. The new law is being enforced as part of a plan to make the country a digital asset hub.
See Related: 76% Of Financial Institutions To Utilize Crypto By 2025 – Report
In an email shared with Coindesk, the HM Revenue and Customs praised the step saying, “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.“
Sunak’s government also sees it as an opportunity to expand the skills of its asset 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 announcement added.
Sunak Doubles Down Efforts to Turn the U.K. Into a Crypto Hub
The latest move is a departure from the stance of the last administration regarding cryptos – which had introduced a series of stringent measures on the asset class, including a ban on refer-a-friend bonuses. The U.K.’s Financial Conduct Authority also mandated that cryptos firms issue clear risk warnings to investors. It further directed that digital assets should be limited to 10% in a publicly held portfolio.
When Sunak was still the finance minister in April, he said that he wanted to make the U.K. a global crypto hub. Then the Chancellor of the Exchequer, noted that the first step was to adopt stablecoins as a form of payment and to consider the legal status of Decentralized Autonomous Organizations (DAOs.) It was at the same time that the leader of the Conservative Party asked The Royal Mint to create an NFT, issued to the public.
See Related: UK Government Plans The ‘Royal Mint NFT’
