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

ME News message, March 31 (UTC+8), Strategy’s preferred shares STRC were listed on the UK trading platform Trading 212 on March 30, with an annualized yield of approximately 11.5%. However, UK investors holding STRC directly may face pressure from additional taxes. In the United States, STRC monthly distributions are classified as return of capital (ROC), so no tax is required; but UK brokers typically categorize it as foreign dividends, which are subject to income tax based on the marginal dividend tax rate, with the basic-rate taxpayer rate at 8.75% and up to 39.35% for higher-income individuals. When selling, investors must also pay capital gains tax (CGT), so the estimated actual net yield is only about 10%. Crypto analyst James Van Straten advises UK investors to instead consider the 21Shares Strategy Yield ETP listed on the Euronext exchange in Amsterdam and Paris. This product has a management fee of zero and uses an accumulating structure, with returns automatically reinvested rather than paid out in cash. When selling, investors typically only need to pay CGT, with no income tax burden, making it significantly more tax-efficient. (Source: ChainCatcher)