UK investors holding Strategy's preferred shares, STRC, listed on Trading 212, may encounter double taxation issues. While STRC distributions are tax-free in the U.S. as return of capital, UK brokers classify them as foreign dividends, subjecting them to income tax rates of up to 39.35% and capital gains tax upon sale. This results in a reduced net yield of approximately 10%.
Cryptocurrency analyst James Van Straten advises UK investors to consider the 21Shares Strategy Yield ETP, available on Euronext Amsterdam and Paris. This alternative offers a zero management fee and an accumulating structure, which reinvests returns automatically, incurring only capital gains tax upon sale, thus providing better tax efficiency.
UK Investors Face Tax Challenges with STRC, 21Shares ETP Suggested
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