81,000 warning letters sent to crypto holders in HMRC tax crackdown
HMRC has issued over 81,000 warning letters to cryptocurrency holders regarding potential unpaid capital gains tax. The tax authority is preparing for increased enforcement powers starting in 2027, when international platforms will be required to share user data.
Why it matters
This signals a significant shift in tax enforcement as authorities gain better visibility into digital asset portfolios, potentially impacting thousands of retail investors.
Image source, Getty Images By Joe Tidy Cyber correspondent, BBC World Service Published 27 minutes ago HM Revenue and Customs (HMRC) sent more than 81,000 letters warning cryptocurrency holders they may owe capital gains tax in the past year.
A Freedom of Information (FOI) request seen by the BBC showed the number of letters sent by the tax authority had almost tripled since 2024.
Investors could face fines or prosecution if they fail to declare profits they made from selling, even if they exchange one cryptocurrency for another.
New powers due to be given to HMRC next year will make it easier to target wealthy crypto investors, with one analyst saying investigations will be like "shooting fish in a barrel".
"There is the expectation amongst tax authorities that cryptocurrency investment is rife with tax evasion," says Neela Chauhan, partner at UHY Hacker Young - which carried out the FOI.
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