UK Prime Minister Rishi Sunak Revokes Tax Payments for Foreign Crypto Buyers: Details

Rishi Sunak, the Prime Minister of the United Kingdom, is actively working to shape the crypto sector for the nation with rules and regulations. From 2023, non-residents using local UK crypto exchanges to buy cryptocurrencies will be exempt from paying taxes. In the UK, profits from crypto activities can be taxed at 20 to 45 percent, depending on which tax bracket the relocated income falls into. The regulation came into force on January 1, 2023.

The tax break applies to a non-UK resident user using a local exchange to place crypto trades. An Investment Manager acting on behalf of a non-UK resident will also be exempt from paying tax on crypto trading profits official post noted about the new rule.

Former UK Treasury Secretary Sunak wants to establish the country as a cryptocurrency hub Web3 Industry sectors.

“This tax exemption is an important factor in attracting global investors, meaning that foreign investors are not subject to UK tax liability simply by appointing UK resident investment managers,” a Coindesk report quoted the British tax authority as saying.

“To build on the UK’s position as a hub for investment management, this exemption has been extended to include crypto assets so that funds holding them are not prevented from appointing a UK manager.”

Sunak first announced this rule in December last year, setting January 1, 2023 as the date when the law would go into effect.

The British government that legalized stablecoins last year, explored ways to empower local financial regulators with more authority over the crypto sector.

In June 2022, the UK published a consultation paper outlining legislation to mitigate risks related to stablecoin projects that fail. Back then, UK authorities had decided to give the Bank of England (BoE) more control to deal with issuers of failed stablecoins.

were tax officials in the UK allegedly Working with crypto companies and groups to formulate legislation that will increase their benefits and in turn bring revenue to the country.

In July last year, the British Legal Commission suggested Changes in existing property laws to include cryptocurrencies and other virtual digital assets.