-
HMRC Crypto Tax: Why Historic Crypto Activity Is Back in Focus
HMRC is contacting increasing numbers of people about their crypto tax affairs. Figures obtained from HMRC through Freedom of Information requests reportedly show that HMRC sent 81,172 crypto-related warning communications during 2025-26. That follows 64,982 in 2024-25 and 27,713 in 2023-24. At the same time, relatively few people appear to have used HMRC’s dedicated Cryptoasset…
-
UK Stablecoin Tax Rules: Draft Crypto CGT Changes from April 2027
Draft legislation – not yet law. Position reviewed 30 July 2026. The UK government has announced changes to the tax treatment of stablecoins. HMRC published a policy paper and draft Finance Bill 2026-27 legislation on 13 July 2026. The measure aims to treat eligible stablecoins more like money for tax purposes. For individuals and trustees,…
-
HMRC DeFi Tax Rules: Draft Crypto CGT Changes from April 2027
Draft legislation – not yet law. Position reviewed 30 July 2026. The UK government has announced changes to the Capital Gains Tax treatment of certain cryptoasset lending and liquidity pool transactions. HMRC published a policy paper and draft Finance Bill 2026-27 legislation on 13 July 2026. The measure will introduce no gain, no loss treatment…
-
HMRC Connect and AI: Why Tax Records Matter More Than Ever
Since I left HMRC in 2021, HMRC has continued to develop the technology it uses, the information it receives and the way it gathers that information. The basic compliance process has not changed as much. HMRC gathers information, compares it with the tax position reported, and asks questions where something does not appear to match.…
-
HMRC’s Cryptoasset Research: Why Crypto Tax Compliance Starts With Better Records
HMRC’s recent research into cryptoasset investors and industry participants highlights a problem I see regularly when helping clients with cryptocurrency tax reporting: the tax rules matter, but the records often cause the biggest problems. Many crypto investors understand that tax may apply. The real difficulty starts when they need to turn years of exchange activity,…
-
Crypto Asset Reporting Framework and HMRC: Why UK Crypto Investors Should Review Their Records
Crypto exchanges have been sharing information with HMRC for some time. The Crypto Asset Reporting Framework, known as CARF, takes this further by creating a formal reporting framework for cryptoasset service providers. From 1 January 2026, UK reporting cryptoasset service providers must collect specified user details and information about reportable transactions, with the first reports…
-
HMRC Crypto Tax Letters: Nudge Letters, Compliance Checks and Enquiries
Receiving a HMRC crypto tax letter can be worrying, especially if the letter suggests HMRC already holds information about your cryptoasset activity. The first point is not to panic. The second is not to ignore it. HMRC may contact individuals about cryptoassets for different reasons. Sometimes the letter asks you to review your tax position.…
-
Why do weak records cause crypto tax reporting problems?
Crypto tax reporting in the UK often becomes difficult when the records do not tell the full story. Many people have used more than one exchange, wallet or platform, and the problem usually appears later, when they need to prepare a tax return, review an earlier year, or explain their position properly. That is the…
-
How is crypto taxed in the UK? Capital Gains Tax and Income Tax
The question is often not whether the rules apply, but understanding what kind of tax issue the activity creates. Selling, swapping, receiving or using cryptoassets can all have different tax consequences, and the answer depends on what actually happened. For many individuals, crypto tax will involve Capital Gains Tax. In some cases, Income Tax may…
-
What record keeping standard is needed for UK crypto tax?
Crypto tax records in the UK need to do more than list transactions. They need to explain what happened clearly enough for the tax position to be calculated, reviewed and supported. That applies whether someone has bought and held crypto, made occasional disposals, received rewards, or traded across several exchanges and wallets. The more complex…
