HMRC Sends 81,000 Warnings to Cryptocurrency Investors Over Unpaid Tax

The HM Revenue and Customs (HMRC) sent 81,172 warning letters, emails, and text messages to cryptocurrency investors during the 2025-26 financial year. This represents a nearly threefold increase from the 27,714 notifications sent in 2023-24, as the agency identifies discrepancies between exchange records and tax returns.

The crackdown targets capital gains tax underpayments from a period of high volatility between December 2022 and October 2025, when Bitcoin rose from approximately £14,000 to £90,000. Profits exceeding a £3,000 personal allowance are taxed at 18% or 24%. Recipients have 60 days to self-report gains via a disclosure service; failure to comply can result in prosecution or penalties up to 100% of the unpaid tax.

Starting in March 2027, HMRC will expand its capabilities to automatically receive customer data from cryptocurrency exchanges across 52 jurisdictions. The agency estimates these measures will raise up to £315 million by April 2030. Neela Chauhan of UHY Hacker Young noted that many young traders mistakenly believe the tax authority has limited visibility into their activities, suggesting that future investigations will be significantly easier once international data is available.