Overview

• HMRC sent about 65,000 crypto tax warning letters in 2024–25, up roughly 134–140% from 27,700 the prior year, taking the four‑year total past 100,000.
• The notices are designed to prompt voluntary corrections, with failure to respond potentially leading to formal investigations.
• HMRC already receives data from major exchanges, and the OECD’s Crypto‑Assets Reporting Framework will begin in January 2026 with first filings due by May 31, 2027.
• A sharply lower Capital Gains Tax allowance of £3,000 for 2024/25 and 2025/26 and a dedicated crypto section on Self Assessment forms broaden the number of people who must report gains.
• The FCA estimates around seven million UK adults now hold crypto, while Treasury projections tie CARF‑linked receipts to about £40m in 2026–27 rising to £110m in 2027–28 alongside funding for 5,500 compliance officers and 2,400 debt‑management staff.