Crypto News

The UK includes crypto investments under the Investment Managers Exemption

The UK includes crypto investments under the Investment Managers Exemption

#includes #crypto #investments #Investment #Managers #Exemption Welcome to InNewCL, here is the new story we have for you today:

Click Me To View Restricted Videos

Transactions in “designated crypto assets” made from tax year 2022-2023 qualify for the UK Investment Managers Exemption. Certain laws were announced by the UK government back in April and are now being implemented by the Commissioners for His Majesty’s Revenue and Customs (HMRC).

On December 20, HMRC published its legislation defining “designated crypto assets” and adding them to the list of investment transactions eligible for the investment manager exemption.

The regulation, which goes into effect on January 1, 2023, does not provide a positive definition of “designated crypto assets.” However, relying on Section 2 of the Investment Transactions (Tax) Regulations 2014, it refers specifically to the class of “investment transactions”. Therefore, the transaction for the provision of services will not be counted during the period that the crypto-asset is held by the non-UK resident user.

The Investment Managers Exemption (IME) is a tool used by the UK to strengthen the country’s status as a financial centre. It gives non-UK resident investors the right to appoint UK resident investment managers to carry out certain investment transactions on their behalf without bringing them within the scope of UK taxation.

Related: UK spurs crypto efforts through financial services reforms

Thus, the “designated cryptoassets” will be treated as equal to stocks and other assets managed by UK funds acting on behalf of non-UK investors. Such a measure was introduced on April 4 as part of the government’s FinTech sector strategy. As stated in the advisory paper:

“This will provide certainty about the tax treatment for UK investment managers and their non-UK resident investors looking to add crypto assets to their portfolios and we expect this will also encourage new crypto asset management companies to establish themselves in the UK.”

With HMRC’s decision reflecting the previous government’s long-term strategy, there are signs of heightened changes from UK regulators. Ashley Alder, who will take over control of the UK’s Financial Conduct Authority (FCA), the country’s main financial regulator, recently told members of the Treasury that companies are “deliberately evasive” when it comes to cryptocurrencies, suspecting that the sector facilitates money laundering.

Click Here To Continue Reading From Source

Related Articles

Back to top button