HMRC Targets Unpaid Crypto Gains with Over 81,000 Warning Letters

HMRC has sent over 81,000 warning letters to UK crypto holders it suspects may have unpaid tax on gains made during the bull run between 2022 and 2025. This is a significant increase from the 27,714 letters sent in 2024.

The tax authority believes that many of these unpaid taxes relate to gains made during this period, and has 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. Offshore transfers potentially carry greater consequences.

Neela Chauhan, a partner at accounting firm UHY Hacker Young, noted that many traders are young and have had little previous experience dealing with HMRC.