Millions of UK crypto holders urged to review tax records before HMRC reporting crackdown

15 July 2026 , 11:35

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Millions of UK crypto holders urged to review tax records before HMRC reporting crackdown

Anyone who has ever owned cryptocurrency is being urged to review their tax records ahead of new reporting rules coming into force next year.

The changes do not introduce a new tax. Selling crypto, swapping one coin for another or being paid in cryptocurrency has long been liable for capital gains tax or income tax, depending on the circumstances.

What is changing is how much information HMRC will receive. Under the UK’s Cryptoasset Reporting Framework, crypto service providers have been collecting customer data since January 2026 and will submit their first reports to HMRC between January and May 2027, covering activity during the 2026 calendar year.

Providers must collect details including customers’ names, addresses, dates of birth and tax identification information, with penalties of up to £300 per user for inaccurate or late reporting. HMRC expects the measures to raise an extra £315m over four years.

Harvey Dhillon, chief executive of Zmartly, said: "Crypto was never untaxed. It was just unseen, and that is the only thing changing."

He warned that everyday investors, rather than professional traders, are most likely to be caught out, adding: "With the capital gains allowance frozen at £3,000, even modest disposals can be chargeable. So if you have ever sold or swapped crypto, check your history now."

The Financial Conduct Authority estimates around 8% of UK adults - roughly 4.5 million people - now own crypto.

James Smith

Editor-in-Chief