HMRC Targets Crypto Holders with Record Number of Tax Warning Letters

HMRC has sent over 81,000 warning letters to cryptocurrency holders in the past year, alerting them that they may owe capital gains tax. This number is almost triple what it was in 2023-24, when there were 27,714 warnings.

The tax authority suspects that many investors have underpaid their taxes on profits made from selling cryptocurrencies like Bitcoin and Ethereum. The value of these assets skyrocketed between December 2022 and October 2025, with Bitcoin's price shooting up to £90,000 from around £14,000.

HMRC has new powers due to come into effect in March 2027, which will make it easier for them to target wealthy crypto investors. These changes will force cryptocurrency platforms outside the UK to share information about their customers with tax authorities.

Analysts warn that investigations into cryptocurrency investors will become much simpler with this new data, making it more likely that HMRC will find and penalize those who have evaded taxes.