What’s Changing?

From 1 January 2026, crypto platforms and exchanges operating in the UK will be required to collect and share detailed information about their users’ transactions with HMRC.

This move is part of the OECD’s Cryptoasset Reporting Framework (CARF), aimed at tackling global tax evasion in the crypto space.

If you’re a UK crypto holder, you’ll soon be required to provide personal details to your platform—including your name, address, date of birth, tax residence and National Insurance number—so your transactions can be reported to HMRC.

Fines and Penalties

Failure to provide the required information could land users with fines of up to £300. Platforms themselves can also be fined £300 per user for failing to report, or for submitting inaccurate or incomplete information.

HMRC’s New Powers

Under these rules, HMRC will gain unprecedented visibility over your crypto activity. They’ll receive details such as:

• Your personal identification and tax reference

• Type of cryptoasset traded

• Number of units

• Transaction value and type (sale, exchange, transfer)

This means HMRC will be able to identify anyone who has failed to properly report crypto gains or income on their tax returns.

As HMRC puts it:

“These new rules will help unmask anyone evading tax due on their crypto profits.”

Why Is This Happening?

The UK government estimates this measure could recover up to £315 million in unpaid tax by April 2030—enough to fund over 10,000 newly qualified nurses for a year.

With crypto ownership booming in the UK—the FCA reports 7 million people (12% of the population) now hold digital currency—HMRC is under pressure to close tax gaps in this rapidly growing sector.

Crypto’s Rise Fuels Scrutiny

Interest in crypto remains high, especially after recent price surges:

Bitcoin climbed from £38,000 in August 2024 to £86,000 in January 2025, with current prices around £80,000.

This growth has made the asset class a prime target for HMRC’s compliance drive.

Reporting Already Tightening for 2024–25

Seek Professional Advice: Consult a tax advisor to understand the implications of the notice.

Limit Information Provided: Only submit information that is legally required.

Maintain Records: Keep detailed records to support your tax filings.

The UK is among the first 52 countries adopting CARF, with others—including the EU, Jersey, Guernsey, Isle of Man, South Africa and Uganda—expected to implement by 2027.

Major hubs like the US, Bahamas, British Virgin Islands, Singapore, Hong Kong and UAE plan to begin information exchange by 2028.

Part of a Global Crackdown

Jonathan Athow, HMRC’s director general for customer strategy, urges crypto users:

“Check the details you will need to give your provider.”

There’s also an HMRC cryptoasset disclosure service for those who want to make voluntary disclosures now, but experts warn to seek professional advice before using it.

HMRC’s Message to Crypto Users

At The Tax Faculty, we specialise in helping individuals and businesses navigate complex tax issues—including crypto compliance.

✅ Tailored tax advice

✅ Self Assessment support

✅ HMRC dispute resolution

✅ Wealth planning and accounting

If you hold crypto assets or are planning to invest, don’t wait until the rules tighten. Get in touch today to ensure you’re fully compliant while paying as little tax as legally possible.

📞 Contact us today and see why we’re the leading choice for trusted, professional tax advice.

How The Tax Faculty Can Help

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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