The Oceania Times

Top Menu

  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Main Menu

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

logo

The Oceania Times

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • Asian shares fall as investors brace for inflation report

  • A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

  • Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

  • The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

  • South Korean won, Philippines peso lead losses among subdued Asian currencies

Investment
Home›Investment›The UK Investment Manager Exemption and Cryptoassets – Consultation Document | Dechert LLP

The UK Investment Manager Exemption and Cryptoassets – Consultation Document | Dechert LLP

By Megan
May 27, 2022
15
0
Share:

As part of wider efforts to make Britain a global hub for cryptoassets technology and investment, on 4 April 2022 the government publicly committed to consult on extending the scope of the UK Investment Manager Exemption (the “UK IME”) to include direct cryptoassets as part of the investment transaction list in order to promote the UK investment management industry in this area. On 23 May 2022, the government published this consultation document with a call for engagement from relevant stakeholders: Expanding the Investment Transactions List for the Investment Management Exemption and other fund tax regimes.

The IME and Cryptoassets: Current Position

By way of background, a non-UK fund vehicle can become subject to UK tax if it is “trading” (rather than “investing”) in the UK through a permanent establishment or agent. For these purposes, a UK-based investment manager with discretionary investment management authority is often seen as an agent of the non-UK fund. The UK IME was introduced in statute to protect the UK funds management industry and was designed to ensure that a non-UK fund vehicle with a trading strategy will not be subject to UK tax simply because investment transactions are conducting on its behalf by a genuine UK resident investment manager (and the legislation sets out a number of tests that need to be satisfied in order to demonstrate that the UK investment manager is an agent of independent status).

The issue for the UK fund management industry at the moment is that it may not be currently possible for a UK investment manager to provide discretionary investment management services to an offshore fund vehicle which is undertaking a trading strategy in relation to direct cryptoassets because the application of the UK IME is restricted to “investment transactions” as set out in regulation (often termed the “white list”), and cryptoassets do not expressly appear on this list. Accordingly, similar to how UK managers operate in relation to physical commodity funds, UK managers have often been forced to limit their fund investment strategy to futures and options contracts in cryptoassets (which do expressly appear on the list, provided physical delivery of the underlying does not occur) or otherwise structure the arrangements so that discretionary investment management occurs outside the UK.

The Proposal for the UK IME

The government proposes to extend the UK IME investment transaction list to certain types of cryptoassets, acknowledging that “cryptoassets” is an umbrella term that continues to evolve which encompasses different types of crypto technologies, including, but not limited to, exchange tokens, utility tokens, security tokens, stablecoins, smart contracts and non-fungible tokens.

HMRC’s is planning to identify the characteristics of cryptoassets that can be used as investment products, and will aim to limit the white list to these types of cryptoassets only. It is proposed that HMRC will only include assets which utilise cryptography and distributed ledger technology to validate and secure transactions (or similar technology), and will not allow the inclusion of cryptoassets to be used in a manner to circumvent categories of assets currently excluded from the investment transaction list such as transactions in land or cryptoassets that provide for the transfer of tangible assets or intangible assets not already included in the investment transaction list. In addition, the definition of cryptoassets will also exclude ‘closed-loop cryptoassets’. These are cryptoassets which are only intended for use within a closed permissioned network, for example for the purposes of purchasing goods or services. They can only be transferred by or to the issuer or participating merchant and can only be redeemed for fiat currency by a participating merchant. It is also hoped that the scope of the new assets included within cryptoassets for these purposes will contain a degree of “future proofing” to anticipate likely developments in this fast moving area.

Collective Investment Arrangements

It is also noted that the UK IME investment transaction list is also used in other contexts in UK tax legislation to identify transactions which would generally be considered to form part of an investment business and would not generally be viewed as trading activities, including for the purposes of a range of funds such as diversely owned authorised investment funds, exempt unauthorised unit trusts, diversely owned reporting offshore funds and approved investment trusts. HMRC is consulting on whether to extend cryptoassets into the investment transaction list for the purposes of the UK IME only, or whether there is a case for extending the change to the other fund tax regimes which also use the investment transaction list.

Expected Timeline and Next Steps

Please note that the consultation closes on 18 July 2022, with a view to HMRC publishing a summary of responses (together with a draft of any legislation or HMRC order) in the autumn (September – November 2022).

Interested parties are encouraged to take this opportunity to provide their views on the types of cryptoassets which would be suitable to be included or excluded from the UK IME investment transaction list, and whether this cryptoassets category should be limited to the UK IME or to all instances in UK tax legislation where the investment transactions list is used.

Source link

Previous Article

Change in Management and Fund Name National ...

Next Article

Edith Bowen Laboratory School students honored for ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Megan

Related articles More from author

  • Investment

    Karolinska Development expands its portfolio following an investment in PharmNovo

    July 4, 2022
    By Megan
  • Investment

    New Jersey Future Celebrates $300 Million Budget Investment in Water Infrastructure

    July 1, 2022
    By Megan
  • Investment

    S. Korea’s industrial output, investment rebound in May

    June 30, 2022
    By Megan
  • Investment

    Gladstone Investment Co. (NASDAQ:GAIN) Plans $0.12 Dividend

    June 1, 2022
    By Megan
  • Investment

    Former Michiana man convicted in investment scheme

    May 27, 2022
    By Megan
  • Investment

    Real Estate Investment is Easier with Mashvisor

    May 28, 2022
    By Megan

Leave a reply Cancel reply

You may interested

  • Investment

    BTG Pactual’s Global Managers Conference Brazil 2022 discussed investment scenario for the coming years

  • Brokers

    Ukrainian Grad Ends Journey With Friendship Forged In Dallas Luxury

  • Australian Economy

    The Blue Economy connects foreign opportunities to U.S. industry

  • LATEST REVIEWS

  • TOP REVIEWS

Timeline

  • August 10, 2022

    Asian shares fall as investors brace for inflation report

  • August 10, 2022

    A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

  • August 10, 2022

    Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

  • August 10, 2022

    The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

  • August 10, 2022

    South Korean won, Philippines peso lead losses among subdued Asian currencies

Best Reviews

Latest News

Stock Shares

Asian shares fall as investors brace for inflation report

People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik Register now for FREE unlimited access ...
  • A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

    By Megan
    August 10, 2022
  • Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

    By Megan
    August 10, 2022
  • The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

    By Megan
    August 10, 2022
  • South Korean won, Philippines peso lead losses among subdued Asian currencies

    By Megan
    August 10, 2022
  • Recent

  • Popular

  • Comments

  • Asian shares fall as investors brace for inflation report

    By Megan
    August 10, 2022
  • A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

    By Megan
    August 10, 2022
  • Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

    By Megan
    August 10, 2022
  • The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

    By Megan
    August 10, 2022
  • Asian shares fall as investors brace for inflation report

    By Megan
    August 10, 2022
  • Australian economy survived Covid better than most but recovery could slow, OECD says | Australian ...

    By Megan
    September 14, 2021
  • The Best Online Brokers, According to 5 Financial Experts

    By Megan
    September 14, 2021
  • Is Disaster Looming for Australia’s Economy?

    By Megan
    September 29, 2021

Trending News

  • Stock Shares

    Asian shares fall as investors brace for inflation report

    People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik Register now for FREE unlimited access ...
  • Gold and Precious Metals

    A-Mark Precious Metals (NASDAQ:AMRK) vs. Maison Luxe (OTCMKTS:MASN) Head-To-Head Comparison

    A-Mark Precious Metals (NASDAQ:AMRK – Get Rating) and Maison Luxe (OTCMKTS:MASN – Get Rating) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the ...
  • Stock Shares

    Stock Market LIVE: Indices flat; Nifty below 17,500; IT, Media drag

    Asian markets started on a negative note following a retreat in Wall Street. This was mostly due to the caution ahead of US inflation data that will shape nvestor expectations ...
  • Australian Economy

    The big change coming to Australian inflation after Reserve Bank governor Philip Lowe laughed at

    How Reserve Bank boss getting LAUGHED at on the world stage will radically change Australia’s economy The Australian Bureau of Statistics is trialing a new monthly inflation data series Reserve ...
  • Currencies

    South Korean won, Philippines peso lead losses among subdued Asian currencies

    BENGALURU (Aug 10): Most Asian currencies were subdued on Wednesday, while most stock markets in the region fell, tracking losses on Wall Street, as investors awaited US inflation data later ...
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© Copyright The Oceania Times. All rights reserved.

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.