HMRC have made the Investment Manager (Investment Transactions) (Cryptoassets) Regulations 2022. These regulations define “designated cryptoassets” and include them in the list of investment transactions that qualify for the investment manager exemption.
The regulations come into for on 1 January 2023 and have effect in relation to transactions entered into during:
- accounting periods current on the date on which these regulations are made (19 December 2022) and any subsequent accounting period; or
- the tax year 2022-23 ,and any subsequent tax year.
A transaction in a designated cryptoasset is specified for the purposes of ITA 2007, s. 827 and 835S and CTA 2010, s. 1150.
Related content from Claritax Books
In Cryptocurrency and Other Digital Assets – Tax Law and Practice, by Andy Wood, the author explores how established principles of UK taxation (e.g. trading or investment, the nature of income, the location of assets, tax reliefs) are properly applied to the fast-moving crypto world.