HMRC tightens crypto tax rules – what UK investors need to know

HMRC is significantly increasing its scrutiny of crypto assets with new reporting rules designed to improve tax compliance.  If you own, trade or receive cryptocurrency, it's important to understand what is changing and what you need to do.

New reporting rules from January 2026

From 1 January 2026 UK based crypto exchanges, wallet providers and other platforms will be legally required to report customer information directly to HMRC under the OECD Cryptoasset Reporting Framework (CARF), introduced through the Finance (No. 2) Act 2023.

Platforms must report:

• your name, address and date of birth
• your tax residency and NI or tax reference number
• the type and quantity of crypto assets you buy, sell or hold
• the date, value and nature of every transaction.

These reports will enable HMRC to compare your crypto activity against your tax return. Platforms that fail to report accurately could face fines of £300 per user, with the same penalty potentially applying to individuals who fail to comply.

Reporting requirements already apply

The new reporting regime may begin in 2026, but taxpayers are already affected.  From the 2024/25 tax year, crypto gains and income must be declared in a new dedicated section of the tax return. 

Capital Gains Tax may apply when you:

• sell crypto for cash
• exchange one crypto asset for another
• use crypto to buy goods or services
• gift crypto (other than to a spouse or civil partner)

Income tax and national insurance may also apply where crypto is received through employment, mining, staking, lending or certain DeFi activities.

Holding crypto alone does not create a tax liability, but accurate records must still be kept.

Greater HMRC scrutiny

HMRC already obtains information through exchange data, voluntary disclosures and blockchain analytics. From January 2026 however, crypto platforms will proactively report transactions, even where no gain has been made.

According to the FCA's 2025 survey around 7 million people in the UK—approximately 12% of the adult population — now own crypto, a 20% increase year on year.  With the value of Bitcoin rising from £38,000 in August 2024 to £86,000 in January 2025, HMRC expects the CARF regime to recover around £315 million in unpaid tax by 2030.

What Should You Do?

If you hold crypto, now is the time to:

• review all transactions since 6 April 2024;
• download records from every wallet and exchange;
• keep details of purchase costs, disposal values and transaction dates; and
• report any crypto gains or income on your 2024/25 tax return, due by 31 January 2026.

HMRC's Cryptoasset Disclosure Service (CDS) is available for taxpayers who need to disclose previous omissions, although professional advice should be sought before using it.

The CARF framework is being adopted by 52 countries including the UK and the EU block of countries, with further jurisdictions joining by 2027 and 2028. As international data sharing expands, moving crypto offshore will not avoid HMRC scrutiny. Staying compliant now is the best way to protect your investments and avoid unnecessary penalties.

If you have any further questions or queries, please contact your Swindells partner who will advise you further.