UK restricts inclusion of crypto ETNs in ISAs…effectively blocking tax-free benefits
Summary
- The UK tax authority said it has excluded crypto-asset ETNs from eligible holdings in tax-free Individual Savings Accounts (ISAs).
- It said it plans to reclassify cryptocurrency ETNs as products under the Innovative Finance ISA (IFISA), where tax benefits are limited.
- Of the 57 platforms approved for IFISA, none have plans to support crypto-asset ETNs, making it harder for investors to access tax benefits, it said.
Forecast Trend Report by Period
UK investors will no longer be able to include crypto-asset (cryptocurrency) exchange-traded notes (ETNs) in tax-free Individual Savings Accounts (ISAs) starting in the next fiscal year.
According to the Financial Times (FT) on 26 (local time), the UK tax authority HM Revenue & Customs (HMRC) plans to remove cryptocurrency ETNs from eligible ISA investments and reclassify them as products under the Innovative Finance ISA (IFISA), where tax benefits are more limited.
Of the 57 platforms currently approved to offer IFISAs, virtually none are known to have plans to support crypto-asset ETNs. As a result, investors are expected to find it harder to receive tax benefits for these products.
The move is seen as reflecting UK authorities’ conservative approach to crypto-related financial products.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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