TWSE Obtains UK HMRC Recognition, Facilitating UK Capital Inflow into Taiwan Stocks

TAIPEI, April 22 (CNA) — The Taiwan Stock Exchange (TWSE) announced today that it has been certified by the UK's HM Revenue & Customs (HMRC) as a 'Recognised Stock Exchange.' The announcement was officially posted on the HMRC website on the 22nd. The TWSE stated that this recognition signifies that Taiwan's capital market meets UK requirements in institutional design, information disclosure, and regulatory mechanisms. This is expected to enhance investment incentives and increase opportunities for UK capital to participate in the Taiwan stock market.

According to the TWSE, the UK is one of the world's major financial markets, and its capital has a significant influence on international markets. Previously, Taiwan's capital market was not on the HMRC recognition list, which limited the suitability and tax treatment for UK investors using 'Individual Savings Accounts' (ISA) for asset allocation in Taiwan stocks.

Following this certification, securities listed on the TWSE meet the criteria for 'qualified investments' under the UK tax system. UK investors can now invest in TWSE-listed securities through Stocks and Shares ISA accounts and enjoy local tax benefits. This will help raise investment incentives and increase the presence of UK funds in the Taiwan market.

According to data compiled by Bloomberg News, benefited by the ongoing AI wave, the market value of Taiwan's stock market has skyrocketed. Last week, the total market capitalization of the Taiwan stock market surpassed that of the UK for the first time, becoming the 7th largest market globally.