UK Crypto Tax Crackdown Sends Over 81,000 Warning Letters in 2025/26
HMRC's crypto tax crackdown continues to intensify in the UK. The tax authority sent over 81,000 warning letters to crypto holders suspected of unpaid taxes during the 2025/26 financial year, nearly tripling the total from 2024.
The surge in warning letters is attributed to gains realized during the bull market between 2022 and 2025. Officials say that many traders remain unaware that selling, gifting or swapping crypto can trigger a capital gains tax bill, and that using digital assets to pay for goods or services carries the same obligation.
The penalties for unpaid crypto tax can reach 100% of the amount owed, plus interest, and rise further for transfers routed through offshore accounts. HMRC expects to gain new enforcement powers next year targeting offshore platforms, which would force them to share customer data directly with the tax authority.