INTM269079A – Non-residents trading in the UK: through UK investment managers, brokers or Lloyd’s agents: Investment managers – “Investment transactions” – Transactions in designated cryptoassets – HMRC internal guidance | Daily News Byte


The Investment Managers (Investment Transactions) (Cryptoassets) Regulations 2022 add ‘designated cryptoassets’ to the investment transaction list for investment manager exemption purposes.

1(1) confirms the rules in force from 1 January 2023, provided that they apply:

  • The rules were made for the accounting period for corporation tax current on the date (19 December 2022) and for subsequent accounting periods, and
  • Up to 2022/2023 tax year and subsequent years for income tax.

What are ‘designated cryptosets’?

Regulation 2(2)(b) states that a cryptoasset is a designated cryptoasset unless it falls within the exclusions set out in 2(2)(b)(i) to (iii).

The definition of cryptoasset used is contained in the OECD’s ‘Crypto-asset Reporting Framework and Amendments to the Common Reporting Standard’ which was published on 10 October 2022.

Cryptoassets that are excluded are those that represent rights in respect of:

  • A transaction that does not already fall under the list of investment transactions
  • Property, a transaction which does not already fall under the list of investment transactions
  • Provision of services if those rights are exercised when the asset is held by a non-resident.

However, cryptoassets are not excluded if they represent rights with respect to another cryptoasset that is itself a designated cryptoasset.

2(3) has a further exclusion which means that while a transaction may be in a designated cryptoasset, it is not a specified transaction for the purposes of 2(1) i.e. it is not an investment transaction. This is where designated cryptoassets are created or issued:

  • Non-UK resident
  • An investment manager acting on behalf of that non-UK resident, or
  • A non-UK resident or a person connected to an investment manager acting on their behalf.

HMRC will publish further guidance on these rules in due course, any technical queries should be directed to


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