HMRC sends 81,000 tax warnings to UK cryptocurrency holders

HM Revenue and Customs (HMRC) issued more than 81,000 warning letters, emails, and text messages to cryptocurrency holders during the 2025-26 financial year. This figure represents a nearly threefold increase from the 27,714 warnings sent in 2023-24.

The tax authority suspects that many investors owe unpaid capital gains tax resulting from the cryptocurrency market surge between December 2022 and October 2025. HMRC has noted that taxpayers may be liable when selling, exchanging, or even using cryptocurrency to make purchases. Failure to declare these profits can result in penalties of up to 100% of the owed tax plus interest.

New regulatory powers expected next year will allow HMRC to more easily target wealthy investors by requiring offshore cryptocurrency platforms to share customer information with UK authorities. HMRC estimates these measures could raise up to £315 million by April 2030. Accountants have noted that many young traders may incorrectly assume the tax office has limited visibility into their digital asset activities.