HMRC Sends 81,000 Crypto Tax Warning Letters
HM Revenue and Customs sent more than 81,000 letters over the past year warning cryptocurrency holders they may owe capital gains tax, a figure that has almost tripled since 2024, according to figures obtained by the BBC. Investors risk fines or prosecution for undeclared profits, including from swapping one cryptocurrency for another. From 2027, overseas crypto platforms will be required to share UK customer data with the tax authorities.
Crypto investors have become the tax authority’s single biggest target for capital gains enforcement, overtaking shares and property, as HMRC uses platform data to chase gains that many holders do not realise are taxable. The surge in “nudge” letters, from under 28,000 two years ago to more than 81,000, reflects both the spread of crypto ownership and a Treasury hunting for revenue ahead of a difficult autumn budget. Coming data-sharing rules will make undeclared gains far harder to hide. For the many Britons who bought crypto casually, the message is that selling, or even swapping, can trigger a tax bill. Watch how much the crackdown raises and whether small investors are caught out.