HMRC Warns Crypto Holders as Tax Crackdown Looms

HM Revenue and Customs (HMRC) sent over 81,000 warning letters to crypto holders they suspect may owe capital gains tax in the past year.

The number of letters has almost tripled since 2024, with HMRC expecting cryptocurrency investment to be rife with tax evasion.

Investors could face fines or prosecution if they fail to declare profits from selling cryptocurrencies, even if they exchange one for another.

HMRC will soon have new powers to target wealthy crypto investors, with the ability to access information from cryptocurrency platforms located outside the UK.

Accountants are urging investors to check whether they owe money as upcoming powers will make it easier for HMRC to target individuals.