TLDR
- HMRC sent more than 81,000 crypto tax warning letters during the 2025-2026 financial year, nearly triple the 27,714 sent in 2024.
- The tax authority suspects many unpaid liabilities are linked to crypto gains made between 2022 and 2025.
- UK crypto users may owe tax when they sell, exchange, give away, or spend digital assets.
- Unpaid tax can lead to interest and penalties of up to 100% of the amount owed.
- From 2027, offshore crypto firms will have to share customer information with HMRC under expanded reporting rules.
HM Revenue and Customs has sharply increased checks on digital asset investors during the 2025-2026 financial year. The latest UK crypto tax drive has led to more than 81,000 warning letters to people HMRC suspects may owe tax.
The figure is nearly three times the 27,714 letters issued in 2024. HMRC believes many unpaid bills may relate to gains made during the crypto market rise between 2022 and 2025.
UK Crypto Tax Rules Draw Wider Attention
HMRC says investors can owe tax when they sell, give away, exchange, or spend crypto assets. People who fail to report taxable gains can face interest and penalties of up to 100% of the amount owed.
The agency also warns that offshore transfers can lead to tougher action. HMRC plans to gain wider access to customer data from overseas crypto firms from 2027 under new reporting rules.
The UK government expects the new data-sharing measure to raise about £315 million, or roughly $430 million, by 2030. The rules will require offshore companies to provide customer information to HMRC.
UHY Hacker Young partner Neela Chauhan told the BBC that many crypto traders are young and have limited experience dealing with tax authorities. She said some investors may believe HMRC cannot easily track their activity.
Banks Face Questions Over Crypto Access
At the same time, UK lawmakers are examining banking access for crypto companies. Parliament’s Crypto and Digital Assets All-Party Parliamentary Group asked major banks to explain how they handle digital asset businesses and related payments.
Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot requested details on account policies, transaction limits, and the reasons behind restrictions. They also asked whether planned crypto rules could change how banks treat companies in the sector.
The group said broad restrictions could affect legitimate firms that follow UK rules and seek access to payment and banking services.
The lawmakers said banks must prevent financial crime and protect customers, but they also said firms should receive individual risk reviews. Vaizey described current banking barriers as unnecessary friction for crypto businesses.
Research from the UK Cryptoasset Business Council found that banks blocked or delayed about 40% of attempted transfers to digital asset exchanges. The findings add another issue for crypto firms as HMRC expands tax enforcement and lawmakers review access to banking services.
