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HMRC Sends Over 81,000 Crypto Tax Warning Letters, Tripling Volume Since 2024
Key points
- HMRC sent 81,172 crypto tax warning letters in 2025-26.
- This number is nearly triple the 27,714 letters sent in 2023-24.
- New powers from March 2027 will compel global crypto platforms to share customer data.
- HMRC estimates these changes will raise £315 million by April 2030.
Increased Scrutiny on Crypto Holders
HM Revenue and Customs (HMRC) has significantly escalated its efforts to ensure cryptocurrency investors comply with tax regulations. In the 2025-26 financial year, HMRC dispatched 81,172 warning letters, emails, and text messages to individuals suspected of underpaying capital gains tax on crypto assets. This figure represents a substantial increase from the 27,714 communications sent in 2023-24, as revealed by a Freedom of Information (FOI) request.
Tax Obligations and Penalties
Investors are liable for capital gains tax on profits from selling or exchanging cryptocurrencies. Failure to declare these profits can result in fines or prosecution. HMRC suspects significant undeclared gains from the period between December 2022 and October 2025, when cryptocurrency values, such as Bitcoin, saw substantial increases.
New Data-Sharing Powers
Upcoming legislative changes will grant HMRC enhanced capabilities to target wealthy crypto investors. From March 2027, cryptocurrency platforms operating in numerous countries outside the UK will be mandated to share customer information with tax authorities. This global data exchange is expected to simplify tax investigations into cryptocurrency holdings.
Projected Revenue and Impact
HMRC anticipates that these new powers will help generate an additional £315 million in tax revenue by April 2030. The tax authority stated that these measures are intended to ensure fair tax contributions from cryptocurrency investors. Accountants are advising investors to review their tax affairs proactively in light of these impending changes and increased enforcement.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
HM Revenue and Customs (HMRC) issued more than 81,000 letters to cryptocurrency holders in the past year, warning them about potential capital gains tax obligations, a nearly threefold increase from 2024. This crackdown is driven by new powers enabling HMRC to access data from crypto platforms globally, making it easier to identify undeclared profits.