The UK has made some arrangements to attract more investors to the island country with the new year. As a result of the regulation approved in December, foreign investors who purchase cryptocurrencies through local investment management companies and brokers will be exempt from taxation from the first day of the year. Prime Minister Rishi Sunak stated in December that they have aspirations to make the country attractive to investors of all kinds.
The tax arm of the British government, HM Revenue and Customs, made the following statements in an e-mail message to news sources:
“This exemption is a big move to attract global investors to our country. Foreign investors will be subject to tax exemption when they transact through UK-based investment companies. We want to take the UK’s investment center position to the next level. Therefore, the tax exemption we applied before will cover cryptocurrencies. We’ve expanded it.”
The necessary legislation is already in place for cryptocurrency investors living in the UK. However, clear regulatory consultations regarding the sector continue among government bodies. HM Revenue and Customs started to exchange views with investors and important companies of the sector on how to tax the DeFi sector in July.