Why could STRC be tax-inefficient for UK investors?
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Q: What’s the tax issue in the UK?
Unlike in the US, STRC payouts are treated as taxable dividends in the UK—meaning you could pay up to 39.35% tax on income.Q: Is there a more tax-efficient alternative?
Yes—products like the 21Shares Strategy Yield ETP reinvest earnings instead of paying cash, meaning profits are typically taxed only as capital gains (CGT).Q: How can investors avoid the tax problem?
Holding STRC inside an ISA (Individual Savings Account) eliminates both income tax and CGT, making it the most efficient option for UK investors. -
uk investors really said “what if yield, but less of it.”