UK issues far more crypto tax warnings
HMRC is now sending crypto investors tax‑enforcement warnings at roughly 40 times the rate of equity traders, a statistic that underscores growing tax scrutiny of digital‑asset activity among seven million UK crypto holders. Heightened enforcement will affect reporting and cross‑border tax planning. (professionaladviser.com)
Freedom of Information data obtained by Brokerchooser shows HMRC issued 101,024 warning letters about cryptoassets since 2020, compared with 2,358 letters for shares and securities. (professionaladviser.com) FOI‑based reporting indicates HMRC’s nudge campaign jumped to 64,982 letters in tax year 2024–25, up from 27,713 in 2023–24 and 8,329 in 2021–22. (gncrypto.news) HMRC describes the communications as “one‑to‑many” or nudge letters designed to prompt taxpayers to review and voluntarily correct filings rather than opening an immediate formal enquiry. (rossmartin.co.uk) The UK implemented the OECD Crypto‑Asset Reporting Framework (CARF) with HMRC guidance requiring cryptoasset service providers to collect user and transaction data from 1 January 2026, with first international reports due by 31 May 2027. (gov.uk) HMRC and tax advisers note self‑assessment returns now include a dedicated crypto section for disposals, proceeds and allowable costs for the 2024/25 tax year, creating a direct data match with platform reports. (cryptoccountant.co.uk) Parliamentary and government publications confirm the Capital Gains Tax annual exempt amount has been fixed at £3,000 for recent tax years and CGT rates on most gains rose to 18% and 24% after the October 2024 Budget. (gov.uk)
