Crypto transactions under increased HMRC scrutiny from 2026
- 19th August 2025
From 1 January 2026, HMRC will introduce new reporting requirements that will significantly tighten oversight on cryptoasset transactions, including buying, selling, transferring or exchanging assets such as Bitcoin. For the first time, this will allow HMRC to link crypto activity directly to an individual’s tax record, making non-disclosure far riskier.
The change comes as cryptocurrency adoption in the UK continues to grow. According to the latest figures, more than seven million people now own some form of cryptoasset, and the value of Bitcoin has surged over the past year. The new measures are part of a global push to bring greater transparency to the sector, with the UK aligning with OECD rules on the automatic exchange of cryptoasset information between tax authorities.
For Capital Gains Tax (CGT) purposes, cryptoassets are treated similarly to shares, with each type of cryptoasset “pooled” to calculate gains. A CGT disposal arises if you:
- Sell cryptoassets, even if the proceeds remain in an exchange account
- Exchange one type of cryptoasset for another
- Use cryptoassets to purchase goods or services
- Gift cryptoassets to another individual (except a spouse or civil partner)
No CGT disposal is triggered when simply moving cryptoassets between your own wallets.
From January 2026, individual investors will be required to provide identifying information – including their name, date of birth, address, and either their National Insurance number or Unique Taxpayer Reference - to cryptoasset service providers. The providers will then report this data to HMRC.
Importantly, using a non-UK based provider will not avoid these rules if that provider operates in a jurisdiction adopting the same global standard. However, some countries hosting major exchanges have not yet signed up, and decentralised exchanges may still present gaps in reporting.
Failure to provide accurate information could result in a £300 fine, with further penalties for continued non-compliance. The first reports covering the 2026 calendar year will be due by May 2027, enabling HMRC to cross-check against self-assessment tax returns. This represents a shift away from the historic reliance on voluntary disclosure.
With tax returns for 2024/25 already including a dedicated section for cryptoasset gains, investors would be wise to review their record-keeping practices ahead of the new regime. Transaction histories, exchange statements and wallet records will become essential for accurate reporting.
Given the volatility of crypto markets, the potential for significant gains – and losses – remains high. However, tax obligations are unaffected by market fluctuations. Seeking professional advice early can help ensure that disposals are reported correctly, reliefs are claimed where possible, and any exposure to penalties is minimised. If you require tailored advice on this issue, please do get in touch.
HMRC’s detailed guidance on the forthcoming reporting rules can be found on their website here.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
