HMRC Gets Data on UK Crypto Holders: Heirs Rejoice
New HMRC reporting rules could help families inherit lost digital assets.
The UK's tax authority, HMRC, will receive comprehensive data on UK residents from cryptocurrency service providers located in 52 jurisdictions as part of a new international reporting regime called the Crypto-Asset Reporting Framework. Starting May 31, 2027, this information will include investors' full transaction records, name, address, and National Insurance number.
This development could help solve a growing problem where heirs fail to inherit cryptocurrencies owned by relatives due to difficulties in identifying their locations. The issue arises because crypto-assets are often associated with wallet addresses rather than an individual's name and are protected by private keys or complex passwords.
TWM Solicitors, a leading private wealth and family law firm, says the new reporting rules could provide HMRC with information about many overseas crypto holdings owned by UK taxpayers. This would help executors identify and administer estates that include cryptocurrency assets.