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Future tax changes promised to support UK cryptoasset market

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Following a consultation, the government has announced its intention to legislate to regulate stablecoins (a form of cryptoasset which aims to maintain a stable value relative to other assets). This development is intended to pave the way for stablecoins to be used in the UK as a recognised form of payment and is part of a series of measures intended to make the UK a global hub for cryptoasset technology and investment.

In a recent speech, Treasury minister John Glen referenced changes the government intends to make to the tax system to make it work more easily for cryptoassets, namely:

  • resolving specific issues like the treatment of DeFi (decentralised finance) loans and staking (concerning the tax consequences of lending or staking cryptoassets); and
  • amending the investment manager exemption (IME) to remove disincentives to UK fund managers including cryptoassets in their portfolios (as it is currently uncertain whether transactions in cryptoassets are covered by the IME). 

Issue: 1572
Categories: News