UK investors purchasing STRC face double taxation; 21Shares ETP may be a better alternative.

ME News message: On March 31 (UTC+8), Strategy’s preferred stock STRC was listed on the UK trading platform Trading 212 on March 30, with an annualized yield of about 11.5%. However, UK investors holding STRC directly may face pressure from additional taxation. In the United States, STRC monthly dividends are classified as return of capital (ROC) and no tax is required; but UK brokers typically list it as foreign dividends, subject to income tax at the marginal dividend tax rate. For basic-rate taxpayers it is 8.75%, while for high earners it can be as high as 39.35%. When sold, investors also need to pay capital gains tax (CGT), so the estimated actual net yield is only about 10%. Crypto analyst James Van Straten suggests that UK investors instead consider the 21Shares Strategy Yield ETP listed on Euronext Amsterdam and Paris. The product has a management fee of zero and uses an accumulating structure, with returns automatically reinvested rather than distributed as cash. When sold, it typically only requires paying CGT, with no income tax burden, offering significantly better tax efficiency. (Source: ChainCatcher)