HMRC Floods Crypto Holders with Tax Warning Letters
HM Revenue and Customs (HMRC) in the UK has stepped up its scrutiny of crypto users, sending over 81,000 warning letters to holders it suspects may have unpaid tax. This number is nearly three times higher than the 27,714 letters sent in 2024.
The tax authority believes a large share of the unpaid tax relates to gains made during the crypto bull run between 2022 and 2025.
HMRC reminded recipients that obligations can arise when crypto is sold, given away, exchanged, or used to make purchases. Failure to pay can result in penalties of up to 100% of the tax owed, in addition to interest.
The crackdown is set to become broader as HMRC prepares to receive new powers in 2027, which will allow it to require offshore firms to hand over customer information to the UK tax authority. This measure is estimated to raise £315 million (or $430 million) by 2030.