As the popularity of cryptocurrency continues to grow, so too does the scrutiny from HM Revenue & Customs (HMRC). If you’ve found Cryptoassets cryptic in the past, now is the time to take notice — especially with key changes introduced for the tax year ending 5 April 2025, and major regulatory shifts on the horizon.

Whether you're an individual investor, a business owner, or an accountant advising clients, understanding the tax implications of Cryptoassets is now essential for staying compliant and avoiding unexpected HMRC inquiries.

HMRC Scrutiny

For the first time, HMRC has introduced a specific section for Cryptoassets within the Capital Gains Tax (CGT) pages of the Self-Assessment Tax Return.

This update, effective for the 2024/25 tax year, signals just how seriously HMRC is treating cryptocurrency transactions such as those involving:

• Bitcoin

• Ethereum

• Stablecoins

• NFTs

• Other digital tokens

If you’ve bought, sold, exchanged, gifted, or staked Cryptoassets in the last tax year, you may need to report a capital gain or loss — and now, there’s a dedicated space to do so.

Cryptoassets Now Have Their Own Section in Self-Assessment

The changes don’t stop there. Starting 1 January 2026, the Cryptoasset Reporting Framework (CARF) comes into effect in the UK.

All UK-based Reporting Cryptoasset Service Providers (RCASPs) will be legally required to begin collecting and sharing detailed information about their customers’ crypto transactions. This includes:

• Wallet addresses

• Transaction volumes

• Asset types

• Buying/selling history

And more...

This will allow HMRC to automatically receive highly detailed data on crypto users and match it against Self-Assessment declarations. In short, if you thought crypto was anonymous — think again.

The Cryptoasset Reporting Framework (CARF): What’s Coming in 2026?

HMRC already processes billions of lines of third-party data every year from banks, employers, and online platforms. This data is used to cross-reference individuals’ tax returns and identify discrepancies.

Cryptoasset data is now joining that arsenal.

From 2026, HMRC will have a clearer picture of your crypto activity than ever before — even if you haven’t voluntarily declared it. This development greatly enhances HMRC’s ability to:

• Detect undeclared gains

• Initiate compliance checks

• Launch formal investigations

• Impose penalties for non-compliance

HMRC’s Data Power: Billions of Lines and Growing

As specialists in Capital Gains Tax and Cryptocurrency, we support both individuals and accountants in navigating these complex areas. Whether you need help calculating your CGT liability, understanding staking rewards, or ensuring full compliance with HMRC, our team is here to provide clarity and peace of mind.

The era of crypto anonymity is rapidly coming to an end. With HMRC now formalising Cryptoasset declarations in the Self-Assessment process and gearing up for extensive data collection from 2026, it’s more important than ever to get your tax affairs in order.

Don’t wait for an HMRC letter to find out you’ve made a costly mistake. Speak with a qualified tax professional today and ensure your crypto journey is as tax-efficient and compliant as possible.

Contact us today on 0800 0016 878 or info@thetaxfaculty.co.uk for expert advice and tailored support.

Why Taxpayers (and Accountants) Must Act Now

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.

Contact Us

Contact us today on freephone 0800 0016 878 for a free consultation on all tax issues, or fill out the handy form below and we'll get back to you as soon as possible.

Alternatively, you can email us at info@thetaxfaculty.co.uk or complete the form below.

(Please note, non-UK callers may need to call 0207 101 3845 if your line cannot connect to our 0800 number)

Feel free to contact us through WhatsApp - we accept calls and messages.

Simply click the WhatsApp button below: